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http://blogs.wsj.com/marketbeat/2008/10/02/looking-for-a-run-on-the-bank/The 2007-2008 credit crisis has reintroduced financial markets to the time-honored reaction to money worries: the run on the bank. Washington Mutual Inc. lost 10% of its deposits in the weeks leading up to its liquidation by the FDIC and purchase by J.P. Morgan Chase & Co.
And while Lehman Brothers Holdings and Bear Stearns, as investment banks, aren’t subject to the same kind of depositor panic, the reduction in credit lines, the pullback in trading with the firm by others, and closing of available windows to capital are akin to the panic faced by commercial banks.
In the wake of bank failures and purchases (such as Wachovia’s recent purchase by Citigroup Inc.), investors have been busy looking for other victims, buying bearish put options and knocking down the share prices of other banks in a bet on the next failure. Since most people on 'main street' seem to be fed up with the big banks and how they've been conducting themselves (especially on this board) why is there not an organized run on one of those big banks??? As I said in another thread. Americans are all about big barks and no bites.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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Joined: Jun 2004
Posts: 15,646
Carpal Tunnel
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Carpal Tunnel
Joined: Jun 2004
Posts: 15,646 |
Shee mofo, day ain't got much bark neither.
Steve Give us the wisdom to teach our children to love,
to respect and be kind to one another,
so that we may grow with peace in mind.
(Native American prayer)
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Joined: May 2006
Posts: 10,151 Likes: 54
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Joined: May 2006
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Again, I think this may be an underestimation of Americans. Anyone with parents/grandparents of a certain age or with a good (good) history teacher links bank runs to the Great Depression.
I would liken it to heading into the back country with lots of avalanche warnings and cranking up your tunes.
Avalanches are beautiful - on film. But I'd hate to try to start one and be sure I wouldn't be caught in it.
Julia
A 45’s quicker than 409
Betty’s cleaning’ house for the very last time
Betty’s bein’ bad
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