The collapse of the Seattle thrift, which was triggered by a wave of deposit withdrawals, marks a new low point in the country's financial crisis. In what is by far the largest bank failure in U.S. history, federal regulators seized Washington Mutual Inc. and struck a deal to sell the bulk of its operations to J.P. Morgan Chase & Co.
World panic is growing. When will it reach Kever Benjamin? The illustration shows the start of the ongoing run on the banks, in England.
2 comments:
The only reason banks can run out of cash is because they have lent out their checking deposits. The functions of depository and investment (earning interest) need to be separated, so that a man can deposit his paycheck on Thursday and know that it will still be there on Friday.
Keep up the good work.
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