Quote:
Originally Posted by the
Yeah, it's really a run on the bank. People don't literally drain every penny from the bank, I don't think that is logistically possible, and a good portion of the population is always asleep at the switch.
But banks need to maintain certain debt/equity type ratios, etc., and if a bunch of people start taking out money, and deposits start to dry up, it's still a "run" on the bank, and it is what eventually causes them to be shut down.
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Yes I understand that their assets value plummeted making them insolvent and I understand that will "shut them down". My point was that I understood a "run on a bank" to be a situation where the customers lose faith in the bank and pull funds to the point they don't have enough liquid to accommodate.
Keep in mind here I'm not trying to educate you on how it is, rather on my understanding.
Aslo, regarding the's relatives you can see he alludes to the fact that they have it taken care of as the went through it fine before.