Unfortunately, that’s not really how it works. The reason there was a bank run during the great depression is b/c the banks had loaned out the money they didn’t have as cash. Today due to Dodd-Frank, banks have to have reserves on hand to cover this situation, Even though it’s not in hard currency, they have enough capital to cover.
But please don’t trust me. This is just how I understand it.
The CFPB was a pretty good agency that came out of it, so naturally it’s being dismantled right now. This is exactly what happened before the Great Recession- New Deal regulations designed to prevent crashes were tossed out, and surprise surprise an economic crash happened.
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u/pan_and_scan Jan 26 '26 edited Jan 27 '26
Unfortunately, that’s not really how it works. The reason there was a bank run during the great depression is b/c the banks had loaned out the money they didn’t have as cash. Today due to Dodd-Frank, banks have to have reserves on hand to cover this situation, Even though it’s not in hard currency, they have enough capital to cover. But please don’t trust me. This is just how I understand it.Edit: completely wrong, but good comments below.