{"id":11822,"date":"2022-10-18T21:47:18","date_gmt":"2022-10-19T01:47:18","guid":{"rendered":"https:\/\/steelcityre.com\/?p=11822"},"modified":"2023-08-18T16:08:26","modified_gmt":"2023-08-18T20:08:26","slug":"shifting-expectations-bank-run","status":"publish","type":"post","link":"https:\/\/steelcityre.com\/2022\/10\/18\/shifting-expectations-bank-run\/","title":{"rendered":"October 18, 2022"},"content":{"rendered":"\n
Douglas Diamond and Philip Dybvig won the Nobel Memorial Prize in economics this year for their work on (bank runs). \u201cA bank run in our model,\u201d they write, \u201cis caused by a shift in expectations, which could depend on almost anything, consistent with the apparently irrational observed behavior of people running on banks.\u201d \u201cAlmost anything\u201d could include social media rumors, why not. [\u2026] \u201cEvery banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone.\u201d <\/p>\n\n\n\n
Click on the image above to read more<\/strong> (Bloomberg Paywall).<\/p>\n\n\n\n