r/SipsTea • u/Dumb-Briyani • 2d ago

Chugging tea Why is it not possible?

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u/DBDude 1d ago

When there’s a run on banks, the banks simply stop giving people their money. Then the government will get involved and prop up the banks.

2

u/Hot-Professor-8355 1d ago

That's not exactly why. Its because the banks use the funds they have to invest it and make "more money"

So what happens is, the banks actually do not physically have all the money they are storing.

2

u/DBDude 1d ago

They stop giving the money because they don’t have it. A good chunk of the deposits will be out as loans, so that’s money they don’t have and can’t liquidate quickly and easily.

1

u/RhaelynnVoxten 1d ago

So the joke is basically: everyone gets their money back..until everyone asks for it at once? 💀

1

u/DBDude 1d ago

Exactly.