Then why is it collapsing on Monday? The whole banking system is fucked is. Better yet: the whole economic system is fucked up.
Debt, debt and more debt. It’s a mess
Discussion
Because once it starts, it becomes a race for everyone to get their money out at the same time. In reality, there is no objective reason to panic other than the fact everyone else is panicking. That's the point. Arguments about the merits of fractional reserve banking are kind of besides the point right now. That's academic right now. This is people's lives and livelihood in the here and now.
I understand this. But it’s the banks themselves who made a mess of this. The panic makes the mess bigger, but at least it exposes how big the mess is.
Yes it’s sad for everyone. But I was already sad. Should we just ignore the issue then, and play good weather?
It’s quite rational to withdraw all your money if there is any risk whatsoever of a bank run precipitating.
Which is why when a bank run starts, it never stops. It becomes purely about psychology.
Same as everyone trying to get out of a soccer stadium at once and getting trampled.
