You miss the larger picture too markdown. I pointed straight at it and you're still squinting.
This won't work. When the government undermines the trust of the people so that they will no longer use the financial system they are trying to protect, that's called "shooting yourself in the foot".
A bank is only in business if people trust it. Money only works if people trust it. Governments only work if the people trust it.
No, I'm not missing the larger picture. I just choose to acknowledge that the people who chose this course of action have dedicated their lives to the financial sector, are highly educated, and have access to the brightest minds in the world.
Considering that we learn about bank runs and trust in the financial system in high school economics class, I highly doubt that these people don't know about them.
In all likelihood, they chose the option that with the information they had, appeared to have the highest chance of success.
Comments
You miss the larger picture too markdown. I pointed straight at it and you're still squinting.
This won't work. When the government undermines the trust of the people so that they will no longer use the financial system they are trying to protect, that's called "shooting yourself in the foot".
A bank is only in business if people trust it. Money only works if people trust it. Governments only work if the people trust it.
No, I'm not missing the larger picture. I just choose to acknowledge that the people who chose this course of action have dedicated their lives to the financial sector, are highly educated, and have access to the brightest minds in the world.
Considering that we learn about bank runs and trust in the financial system in high school economics class, I highly doubt that these people don't know about them.
In all likelihood, they chose the option that with the information they had, appeared to have the highest chance of success.