thebartermyth [he/him]

  • 11 Posts
  • 51 Comments
Joined 10 months ago
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Cake day: September 15th, 2023

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  • I’m pretty sure FDIC gives the bank money rather than individuals. Very rich people sometimes do targeted bank runs for profit, the SBV collapse is a good example. It mostly works when corporate deposits exceed FDIC because hypothetically they won’t get it back (in practice they did iirc). Sorta tangentially, I think banking law people were worried(?) hopeful(?) that this sorta negates the privatize banking system broadly. Cause essentially SBV, and any bank, was backed by the fed as ‘too big to fail’. Idk everyone just stopped talking about that aspect of it a couple weeks later and it was never resolved. (lol)

    Doing a bank run is hard though, because to do it you need to exceed the bank’s reserve, which is hard even as a group. Plus, it kinda doesn’t benefit the people doing it, right? Like if you did a bank run it would collapse and you’d need to apply for an account at a different bank. Maybe they’d even know you did a bank run and not accept you. (Probably not IRL, but hypothetically). You can’t really profit off of the bank collapsing unless you have a lot of money / leverage / etc.

    An additional collateral attack than can be made is to simply not pay any debts (mortgages, credit cards, etc) owed to that same bank.

    Debt strikes are much easier to coordinate. It’s still really really hard, but it’s easier because people tend to have a lot of debt. It’s still very risky for the people doing it. The gambit is essentially for the bank to settle for less than the total debt.

    E: also maybe check out The Debt Collective