US Bank Runs Accelerate After FDIC Starts Running Desperate Ads, MECU Customers Overwhelm Bank (Video)
US Bank Runs Accelerate After FDIC Starts Running Desperate Ads, MECU Customers Overwhelm Bank (Video) by Silver Report
There’s always the faint possibility they were depositing but since 14 million people have been laid off in the past several weeks it’s not likely. Then when you zoom out and examine the high rate of cash withdrawals across the US it seems we are witnessing what could be a very bad sign for the US economy.
Between 2008 and 2013 465 banks failed so the implication that banks can’t fail in these times may be oversold. There is also the fact the FDIC has begun running this poorly thought out ad with sappy music asking customers not to remove cash from the banks. This did not stop the bank runs but it seemed to have the opposite effect merely confirming what has been on many people’s minds. To clarify this is terrible for smaller banks and the FDIC has been taken a lot of steps meant to calm the masses.
They have ended fractional reserve banking and have transitioned over to zero reserve banking meaning a bank can lend out every single dollar with nothing in reserve. The NY Fed recently wrote an article in conjunction with the FDIC pushing the concept of ending bank reporting and deliberately hiding bank balance sheets so customers are not aware of how close to failure their bank is. The Fed championed the idea of creating a more opaque system so as to leave customers in the dark until it is far too late for them to remove their cash.