toilet paper run is any indication, US depositors will soon shift their attention to that other “paper”…what An American Bank Run Would Look Like, Once a bank run gets going, even a healthy bank can have a hard time stopping it because just giving everyone their money right then and there usually isn’t an option. Bank run (bank panic) A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the charteringagency, i.e. many depositors withdraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business. Technically the title of this post is wrong: the truth is that nobody could possibly know or predict what a bank run would look like in detail suffice to say that it would have terminal and devastating results on the global economy. One needs only remember what happened when the Reserve Fund broke the buck and the $3 billion money market industry was at risk of unwinding (for those who do not, Paul Kanjorski does a good summary here). What we … Continue reading A Bank Run in the Us Can Be Avoided, Although If the Ongoing – and Quite Poetic –