The electronic bank run
"We don't know"
Banks operate on something called the fractional reserve system which means if everyone - or even just a lot of people - withdraw their money from a bank all at once, it goes bust.
Federal Deposit Insurance nominally protects depositors on the first $100,000 - now $250,000 - of losses in a bank failure.
There's just one problem with the system.
It's not funded adequately to deal with system-wide failure.
If this politician is to believed, we came very close to a total system-wide meltdown as he correctly admits, no one knows if this kind of a run will occur again.
Nothing is stopping it.
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