The thing that’s hanging over this economy, threatening to turn it into Great Depression Deux, is the term “bank run.” Simon Johnson explains that the FDIC makes an old-school bank run unlikely. But: “Sadly, it turns out we haven’t outgrown runs. Rather, we have learned since mid-2007 that other kinds of runs — let’s call them wholesale or professional investor runs — are not only possible but also increasingly likely in the United States.” (Tho keep in mind that Johnson is of a particularly pessimistic mind about the current crisis, and this feeds into that perspective.)

Posted: Tuesday April 14, 2009 by Alesh Houdek · Categories: Economics · Comment feed: RSS, atom

 

Comment

Commenting is closed for this article.