Avatar
Fartface2000 2y ago

A bank is just as insolvent before the bank run as after the bank run until recently. If you run the bank, the Fed will make it solvent.

Reply to this note

Please Login to reply.

Discussion

ae
Duke Yeamon 2y ago

From where I stand any fractionally reserved bank is by definition insolvent. But I'm no expert, can someone explain why I'm wrong?

Avatar
133332 2y ago

Because there's an infinite amount of cash at the Federal Reserve 🤙