When the FDIC put Silicon Valley Bank (SVB) and Signature Bank into receivership in March, a study reported on the Social Science Research Network found that nearly 200 midsized U.S. banks were similarly vulnerable to bank runs. First Republic Bank went into receivership in May, but the feared contagion of runs did not otherwise occur. Why not? As was said of Lehman Brothers 15 years earlier, the targeted banks did not fall; they were pushed, or so it seems. One blogger shows how even JPMorgan Chase, the country’s largest bank, could be pushed — not perhaps by local short-sellers, but by China. And that is another good reason not to provoke the Chinese Dragon into “war by other means.”
When a run on a bank continues, the reserves are reduced. Recession. Bad debts. etc. ELLEN Brown is a great writer of finance. I am a lay person . The bank's charge an invisible interest rate percentage. This rate has to be met in a mortgage. So this is the way banks do business. The then mortgage holder has to pay interest from their real money. The bank's make a profit. And build up cash flow.
A #CaringSociety served by a #CaringCircularEconomy needs a #CaringBankingSystem, which we currently don't have. If you want one, you should subscribe to Ellen Brown's Web of Debt Substack to learn how to talk about #PublicBanking.
When a run on a bank continues, the reserves are reduced. Recession. Bad debts. etc. ELLEN Brown is a great writer of finance. I am a lay person . The bank's charge an invisible interest rate percentage. This rate has to be met in a mortgage. So this is the way banks do business. The then mortgage holder has to pay interest from their real money. The bank's make a profit. And build up cash flow.
A #CaringSociety served by a #CaringCircularEconomy needs a #CaringBankingSystem, which we currently don't have. If you want one, you should subscribe to Ellen Brown's Web of Debt Substack to learn how to talk about #PublicBanking.