On: Joint statement by the Department of the Treasury, Federal Reserve, and FDIC

[cragfar]

If the treasury allowed a bank run to wipe out depositors, every single business would be transferring funds out of their regional bank Monday morning.

[postalrat → cragfar]

And now they won't?

[kragen → postalrat]

no, they aren't at risk that their deposits will evaporate because they were late to the bank run any more

[postalrat → kragen]

so why would they care if a bank run happens or not? seems like a pretty good time to make adjustments for the long term.

[kragen → postalrat]

exactly, the idea is for depositors not to care if a bank run happens or not, because the way that bank runs happen is that depositors worry that a bank run will happen

[postalrat → kragen]

well we will see what happens over the next couple weeks. no prediction we make here is going to change it.

[kragen → postalrat]

well, i kind of hope you're right about that

it's going to be a pretty interesting couple of weeks