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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: patron_anejo_por_favor who wrote (183016)7/24/2002 1:59:33 PM
From: Tommaso  Read Replies (1) of 436258
 
"runs on the banks. "

The old-fashioned run of a bank resulted from the gold standard, when depositors would try to withdraw their money in gold--or holders of bank notes would demand payment in gold ("specie"--wasn't that what they called it?)

Since there's nothing but paper anyway now, it's hard to imagine lines of people demanding currency the way they used to demand gold. Even if the bank goes bust, the average depositor is covered.

I guess there could be some wrangling among claimants with larger uninsured desposits.

However, I do share your uneasiness that SOMETHING can happen to tie things up and bring discomfort even to prudent people. To judge from the stories in the newspapers, the stock markets are doing pretty well along that line. I think when the mass redemptions in mutual funds and pension fund start, that will be our "run." May already be in progress.
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