tag:blogger.com,1999:blog-7603499.post7579223050733288886..comments2023-11-30T03:44:34.585-05:00Comments on Opinions Nobody Asked For: *sniff sniff* Smells Like Bullshit HereJeffhttp://www.blogger.com/profile/11683622475941901572noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7603499.post-58964322997297450932009-08-28T15:30:39.727-04:002009-08-28T15:30:39.727-04:00As I read through the actual content of the quoted...As I read through the actual content of the quoted material, the specific claim seemingly being argued is that revealing which banks have had to take on emergency loans would place those individual institutions at a competitive disadvantage, a prospect I don't find unreasonable at all. If you knew your bank had to take on emergency loans, but the one down the street didn't, what's your normal reaction? Don't you kind of want to put your money in the bank that didn't need the bailout?<br /><br />That's a reasonable action, and that reasonable action is exactly what causes a run on the bank, and the failure of said bank.<br /><br />Really, there are only two plausible scenarios in my mind which don't lead down this road.<br /><br />1) Most depositors don't care, or don't care enough to take action. If nobody - or a small enough number of depositors - acts on the information, then there's no need to fear a run on the bank.<br /><br />2) The problem is systemic enough that everybody's bank is in trouble, so nobody has a "good" bank to run to.<br /><br />At the institutional level, there is a real risk here. And when there's enough individual institutions facing danger, <a href="http://en.wikipedia.org/wiki/Bank_run" rel="nofollow">then there is the danger of a systemic problem.</a>-Davehttps://www.blogger.com/profile/16998205576045100941noreply@blogger.comtag:blogger.com,1999:blog-7603499.post-73150854082144268662009-08-28T13:23:04.063-04:002009-08-28T13:23:04.063-04:00Oh come now, Woody. It's possible the Fed ha...Oh come now, Woody. It's possible <a href="http://www.youtube.com/watch?v=n0NYBTkE1yQ" rel="nofollow">the Fed has no fucking clue who they loaned money out to</a>.Miguelhttps://www.blogger.com/profile/06107727686017040193noreply@blogger.com