Forum Post: Just say no to bank runs

Do not encourage bank runs. If someone is encouraging bank runs don't listen. Bank runs were one of the main contributing factors of the Great Depression.

Because of fractional reserve banking (the system where banks are required to only keep 10% of your deposit on hand.) They can lend out and charge interest on the other 90%.

So everyone's money isn't even in the bank someone borrowed it to buy a house or a car or to invest in their business. This is how you make interest and how the banks make money.

If everyone goes to a bank to cash out at once it would likely cause the bank to go under.

Which if enough banks went under it would send shock waves through the global economy.

Anyone suggesting bank runs is showing reckless disregard for our economy and our society.