Posit: People think a bank might be financially shaky...

[luguvalium]

"Consequence: People start to withdraw their money."
"Result: Pretty soon it is financially shaky."

http://abovethelaw.com/2010/03/the_backstory_of_the_john_roberts_retirement_rumor.php

So did the class fail this assignment?

Comments

[blueadept]

I think the class proved the professor's point even more clearly than the professor had imagined.

As far as banks go, you already know my thoughts on this. If banks stuck to banking (facilitating convenient/efficient storage and transfer of funds) and investors stuck to investing (lending), we wouldn't have a fractional reserve system and banks wouldn't be financially shaky just because some depositors wanted access to their money.

[ptocheia]

That's crazy! Ah, the power of groundless rumors.

Also, Sneakers = Awesome.