The haunting memory of bank runs from the past should serve as a stark reminder that banks are not as bulletproof as they seem.
In 1929, the stock market crash marked the beginning of the Great Depression, leading to widespread panic and a series of devastating bank runs.
In just the first few months of 1933, over 5,700 banks failed, and depositors lost approximately $140 billion (in today's terms) of their savings. By the end of 1933, 11,000 had failed.
Fast forward to 2001, when Argentina faced a massive economic crisis. A run on banks led to the government freezing bank accounts and converting dollar-denominated accounts to pesos at a fixed rate, causing many people to lose a significant portion of their savings. In just a few months, the country witnessed a decline in GDP by 11%, and the unemployment rate skyrocketed to over 20%.
The threat of economic collapse and bank runs is still very real today. In a world where central banks continue to print money at an alarming rate, and financial systems teeter on the brink of collapse, the security of your savings is anything but guaranteed.
2minutebitcoin
npub1p6…9ej3v
2023-05-09 04:50:51
Author Public Key
npub1p63d4vekvuql9zltpp4dezzfk2xxfgjsfqyglf4ju4syalekn4csn9ej3vPublished at
2023-05-09 04:50:51Event JSON
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"content": "The haunting memory of bank runs from the past should serve as a stark reminder that banks are not as bulletproof as they seem.\n\nIn 1929, the stock market crash marked the beginning of the Great Depression, leading to widespread panic and a series of devastating bank runs.\n\nIn just the first few months of 1933, over 5,700 banks failed, and depositors lost approximately $140 billion (in today's terms) of their savings. By the end of 1933, 11,000 had failed.\n\nFast forward to 2001, when Argentina faced a massive economic crisis. A run on banks led to the government freezing bank accounts and converting dollar-denominated accounts to pesos at a fixed rate, causing many people to lose a significant portion of their savings. In just a few months, the country witnessed a decline in GDP by 11%, and the unemployment rate skyrocketed to over 20%.\n\nThe threat of economic collapse and bank runs is still very real today. In a world where central banks continue to print money at an alarming rate, and financial systems teeter on the brink of collapse, the security of your savings is anything but guaranteed.",
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}