From: Team Rocket Elite | #052
You believe wrong. Most banks are leveraged to a ridiculous agree.
Guess I was wrong then. What do they do if everybody did suddenly want their money?
If I recall, because of teh great depression the government put a buncha checks in place to prevent a crash like this. While only a percentage of the money is actually kept at the banks (the rest of it is lent out/invested), I believe US banks have 100K insurance.
In general if everyone suddenly wanted their money a few things would happen. The banks would sell off some of their investments to get the money and the government would have to step in. Not saying a buncha banks would not close down, or that the entire actual circulation of the money would not take a while.
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Chrono1219