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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by twblalock on Sunday March 12, 2023 @10:26PM (#35130088)
That didn't prevent multiple runs against Washington Mutual in 2008, and it won't prevent runs now. People are worried that they won't be able to get to their money even if it is insured.

Plus, even if the "typical" consumers don't freak out, businesses might. There are a lot of businesses with accounts over the FDIC limit. Only about 60% of bank deposits in the US are insured.

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Re:Joint Statement by the Department of the Treasury, Federa... by chrisdfrey on Sunday March 12, 2023 @10:36PM (#35130214)
Right, and the clientele of SVB was largely businesses. Only 7% of SVB deposits were FDIC insured, making them extra vulnerable to bank runs.
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Re:Joint Statement by the Department of the Treasury, Federa... by flangola7 on Sunday March 12, 2023 @11:39PM (#35130695)
>People are worried that they won't be able to get to their money even if it is insured.

If the US government is unable to cover those claims then you have much bigger problems to worry about.

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Re:Joint Statement by the Department of the Treasury, Federa... by notch898a on Monday March 13, 2023 @12:33AM (#35131115)
If I thought the US government was going to fail I'd simply try to be the first to convert my dollars to a dense and valuable commodity, like gold, and then find another government to live under. It's not like people pulling out dollars have to keep their wealth in dollars.
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Re:Joint Statement by the Department of the Treasury, Federa... by antihipocrat on Monday March 13, 2023 @02:38AM (#35131937)
If it ever got that bad a can of beans would be worth more than almost anything.
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Re:Joint Statement by the Department of the Treasury, Federa... by ThalesX on Monday March 13, 2023 @06:31AM (#35133716)
Not the first failing empire in the history of the world...
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Re:Joint Statement by the Department of the Treasury, Federa... by heisenbit on Monday March 13, 2023 @03:10AM (#35132184)
The ability to mint money is unlimited. The ones being eventually bailed in will be foreign debt holders via inflation.
[ Parent | on HN ]