So, uh, how do you feel about fractional reserve banking? Nearly all banks worldwide practice it. Statistically, it's not impossible that the entire world financial system could collapse due to uncorrelated bank runs.
It is impossible. Only a moron of magnificent magnitude would fail to print additional cash to cover the run.
The problems caused by the feds failure to lend to First Bank of America during the Great Depression are well understood by the central banks.
What would likely happen is the overnight rate would go up to 12%, and additional money would be printed to cover withdrawals for the month or two most people would be willing to forgo 12% interest in a potentially inflationary economy.
i mean, the world financial system did almost just collapse, not that long ago, https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80... more or less due to the confluence of several adverse events, each of which probably could have been buffered on its own.
When you say additional money would be printed, I assume you mean the M0 money supply would be increased?
It's not impossible, no, but in the case of my computer a single user - me - controls memory usage.
I guess it's beneficial in >99% of use-cases, and the <1% of other cases can turn it off. Still I guess I'm naive enough to hope a correct program would not crash.
