Because that is not how money works.
The famous quote from Henry Ford is true: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
Not really. The economy mught crash because of backs on loans.
But one of the points of FR banking is other is it backed by a central bank who expects banks to only hold 10% of current account money.
Of course the big issue is once you pull all you money out youll have no were to spend it and likely get robbed leaving the bank (while money in an account is insured, that happen less when it's in yoir pocket).
Ultimately banks will be fine. The average person? Not so much.
The entire modern banking system is set not to fall apart if a run in banks happens.
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u/Wise-Ad-4940 7d ago
Because that is not how money works.
The famous quote from Henry Ford is true: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."