There is more about this today in the news. They get so worried that rumors of insolvency will spread about the troubled banks. Aren’t all banks technically insolvent with fractional reserve system?
Yes, Tavia. But, the public doesn't know that until EVERYBODY tries to get their money out at the same time. That's why they try and tell everyone that things are just fine.
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There is more about this today in the news. They get so worried that rumors of insolvency will spread about the troubled banks. Aren’t all banks technically insolvent with fractional reserve system?
Yes, Tavia. But, the public doesn't know that until EVERYBODY tries to get their money out at the same time. That's why they try and tell everyone that things are just fine.
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