Thinking about bank runs. Prior to federal deposit insurance, why couldn't banks protect themselves from runs with explicit policies? Like, “if our deposits drop by more than X% in Y timeframe, we will automatically halt withdrawals.” Did any banks ever try this?
-
-
Well my whole job right now is basically to read three dry and disorganized books and distill them into one clear and engaging ~4k-word blog post, rinse & repeat…
-
Best concept that I’ve taken away is “Information-insensitive debt.” I.e. If you loan me $X00k to buy a house then you have to care about updates to my ability to repay, but if you deposit $X00k with Resona, you don’t. Resona’s service to depositors isn’t just risk smoothing.
- 2 more replies
New conversation -
-
-
I just heard that same thesis on an
@TheStalwart episode about the “Money View”Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.