Small amounts of capital are insured, so there isn't much to worry about in terms of bank runs. Plus we already know the government can prevent almost all bank failures.
But if there is that capital flight, it may just be to bonds, which are more attractive with high interest rates anyway (and still seen as safe, even if we just collectively ignored the downgrade).
We could actually see rates just kinda wobble within a range for a few years. Shake out some garbage without causing too much chaos.
Joda
npub1w0…d0pgd
2024-04-09 15:33:58
in reply to nevent1q…p43w
Author Public Key
npub1w08wy6ct50q9lenk44r68url0ywrtzeey96xx5v6vm0hgpe08wmqkd0pgdPublished at
2024-04-09 15:33:58Event JSON
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"content": "Small amounts of capital are insured, so there isn't much to worry about in terms of bank runs. Plus we already know the government can prevent almost all bank failures. \n\nBut if there is that capital flight, it may just be to bonds, which are more attractive with high interest rates anyway (and still seen as safe, even if we just collectively ignored the downgrade).\n\nWe could actually see rates just kinda wobble within a range for a few years. Shake out some garbage without causing too much chaos. ",
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