Is the Fed worried about Bank Runs?

[DrHenley]

http://www.cnbc.com/id/101222045

"Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday."

Since most of the "money" in the banks now is digital, any bank run would be devastating because there is very little actual cash to withdraw. If you doubt that, go withdraw $10,000 in cash.

A while back I withdrew $5,000 in cash. It was an enlightening experience...

 

[Brent S]

Yeah, there are signs all over every bank, "FDIC" insured, too bad the FDIC is broke too.

 

[Myrrph]

here in SG there is a cap to how much you can withdraw per day.

There is a law which states how much cash on hand a bank should have. How much is liquid, how much is assets. but still ...

 

[Brent S]

We have rules on how much cash banks have to keep on hand vs what they lend out, but it is so unbalanced that any run on the banks will tip it over the edge. Our system is in serious trouble, but we have so called experts that keep reassuring the public that everything is fine. All I can say is get your affairs as prepared as you can, as our economy is going to collapse, I'm not sure when, but it will happen. Economies have gone up and down all over the world for a long, long time. Anyone that thinks it can't happen here is like a proverbial ostrich with it's head in the sand.

 

[Myrrph]

yes, i know what you mean Brent. Just saying that the amount of liquid assets here are quite stringent. Somehow I think its a way to keep foreign banks away! lol.

 

[Brent S]

yes, i know what you mean Brent. Just saying that the amount of liquid assets here are quite stringent. Somehow I think its a way to keep foreign banks away! lol.

Well I'm glad to hear of any country that is trying to make fiscal sense.

 

[Myrrph]

yeah but then... there is the property bubble which no amount of liquid assets can protect against...

http://www.forbes.com/sites/jesseco...omy-is-heading-for-an-iceland-style-meltdown/

lol. no one is perfect