Reply to SVB Bank Run: Fed Calling Emergency Meeting

Forum Index » Political Discussion

Reply to "SVB Bank Run: Fed Calling Emergency Meeting "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How does one mismanaged bank cause confidence in the entire banking system to collapse?[/quote]

Because it's the psychology of being a small business owner seeing the headlines that[b] you could instantly lose all money for your business over $250k in bank. [/b] You could wake up the next day and have $0 to pay your employees, buy supplies, and pay your rent. It only takes one domino to fall to start the panic. Then another bank fails, and then another.  Soon we have a full on nation wide bank run that sends us back to 40% unemployment like the Great Depression.  Does fear and greed ever make rational sense?  It doesn't have to, but it can happen when people start to panic.[/quote]

Did the small business owners think that FDIC insurance was just pretend?

Why should these people get a bail out over any other group of people who have last money for some other reason.

It's amazing to me that some of the most vocal people i have seen out there loudly demanding handouts are people who I have also seen being completely hostile towards other forms of government assistance.  I guess it's different when the money goes to them. [/quote]

Are you stupid? What if you have $10M to run a small business? Where are you going to put the cash? Under your mattress?  Into 40 bank accounts?  What if you have $20M to run your small company? 80 bank accounts?

The people being harmed are depositors, nitwit.  They're not some kind of scheming wall street banker.  They are businesses that have to pay employees their salaries, health care
, etc.

If you want to collapse the economy and send unemployment up to 40%, this is a great way to do it.
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics