Thread replies: 2
Thread images: 1
Thread images: 1
Anonymous
Why does the stock market even matter in determining when bank runs occur? 2017-06-18 10:27:10 Post No. 2501912
[Report] Image search: [Google]
Why does the stock market even matter in determining when bank runs occur? 2017-06-18 10:27:10 Post No. 2501912
[Report] Image search: [Google]
File: pepe70.png (13KB, 411x387px) Image search:
[Google]
13KB, 411x387px
Why does the stock market even matter in determining when bank runs occur?
Anonymous
2017-06-18 10:27:10
Post No. 2501912
[Report]
I get publicly traded companies can receive lower interest rates on loans used to generate capital if stock price is high, and I get that if stock price suddenly flops that can change their rates and make it very difficult to pay back loans which can potentially lead for them to default on bank loans
but why does all this make bank runs occur, like it did in the Great Depression stock market crash
why did falling stock prices cause bank runs, it just doesn't make any sense
>>
>bank customers deposit 100k$ into a bank
>bank invests 90k$ into stock market
>stock market crashes by 50%
Thread posts: 2
Thread images: 1
Thread images: 1