I Have A Question Volume 85

Honest John Back Room » General discussion ( non motoring )
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Sun 28 Aug 2005 23:26
How a bank manages money - David Horn
Things would go horribly wrong and the banking system would collapse. That's what happened in the US shortly after the Wall Street crash. Everyone tried to get their savings out of the banks, the banks ran out of money and a lot of people were U/s.

Moral of the story is keep your money in a sock under the floorboards.
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Sun 28 Aug 2005 23:28
How a bank manages money - Adam {P}
So the entire banking system is constructed on the hope that the market doesn't crash or no-one wants to clear out their savings?

I wasn't thinking so much of a market crash but more of an individual bank. I know it would never happen but I needed to fill an empty 10 minutes in my life.

Cheers Dave.
--
Adam
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Sun 28 Aug 2005 23:31
How a bank manages money - smokie
I'm not about to try anything as advanced as splitting posts yet Adam...I'm still a novice!

There is a secondary problem which is that there is not as much cash as there is money on paper, by a long way. If the whole customer base of one bank (individuals rather than businesses) decided to take out their money in cash then there would be a shortage, if there was enough in the first place.


Aren't the pubs open up your way?
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