Originally Posted by 97 bulls
Exactly. Wasn't that what happened during the great depression? The stock market ccrashed and as one of the side effects, people either loss their money or pulled it out of the banks. Banks take peoples money and invest it.
Then people were weary about putting money bank into banks and thus why the government had to step in and insure a portion of the money americans put into banks.
That 250000 is insurance for Americans not banks. If we have another crash, banks don't get to keep your money.
During the Great Depression, very few people lost their money due to bank failures. It was propaganda back then and it's propaganda now. It was only 2-3% of deposits that were lost.