/biz/ - Business & Finance

>>49742132
>Trad fi have regulations and support mechanisms in place to deal with this kind of thing.
no they don't, they have mechanisms in place to lull you into a false sense of security.
if everyone went to take their money out of the banking system right now today, the FDIC would simply close the banks and force people to wait in line in an orderly fashion. it's the same as these places, suspending withdrawals.
the FDIC has something like 10% of all deposits actually available in reserve. the rest would have to be printed, but the government doesn't just up and do that because they know they would have social upheaval within weeks. during the GFC, the FDIC had only 1% of all banking system deposits ready in reserve.
the "I" in FDIC is not lying to you. it's literally just "Insurance." it can fail you the same way GEICO can fail you.
look to this 2008 example from the UK for what would likely happen if the US system were ever tested for real: https://en.wikipedia.org/wiki/Nationalisation_of_Northern_Rock