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To: Stefan who wrote (45377)	6/7/1999 3:13:00 PM
From: BGR	Read Replies (1) \| Respond to of 86076

Stefan, Nothing different from what would happen if all of us wanted to withdraw our money from the bank and stuff it under the mattress due to the fear of widespread bank failures. General chaos and economic regress. In fact, this was a situation in the pre-FDIC days and still happens in countries w/ under-developed financial systems. But rarely do residents of countries w/ stable financial systems with checks and balances in place worry about bank failures from large withdrawals hitting the banks at the same time as the Fed is supposed to provide liquidity in such cases. Same in the case of a sudden liquidity crisis in the market, in fact we have already seen this last October in the bond market when the world didn't come to an end as the Fed handled the situation beautifully! I am assuming of course that the withdrawal was not for any fundamental economic reasons but because of general herd mentality. If it is for fundamental economic reasons that would be a concern, not becuase the financial market is going to collapse (which it should, as it just reflects the economy), but because of the problems in the economy itself which raises more serious concerns. -BGR.