2006-06-19 07:30:40 · 4 answers · asked by Anonymous in Social Science ➔ Economics
1. Fraud - commited by bank member- taking away reserves.
2. Fraud - commited by backing reserves with volitile securities (inflated real-estate, stock-market)
3. Government failure.
2006-06-19 07:50:55 · answer #1 · answered by Giggly Giraffe 7 · 1⤊ 0⤋
It is interesting that a number of economic occurrences are closely related to uncertainty. In your question, if you are uncertain whether your bank is solvent, you may want to withdraw your assets. This even applies to the current oil prices: it is not the oil companies so much as it is the speculators (commodities, hedge funds). Any time there is bad news, e.g., the twit running Iran rattling his saber, concerns about supply cause the price to go up, whether or not there is a genuine shortage.
2006-06-19 16:21:04 · answer #2 · answered by aboukir200 5 · 0⤊ 0⤋
Speculation
Government Bankruptcy
Fear about collapse of the Financial System
2006-06-19 15:30:02 · answer #3 · answered by LILA 1 · 0⤊ 0⤋
1. some one with a gun
2. Uncle Sam was there
3.your spouse was there
2006-06-19 14:35:11 · answer #4 · answered by ray 5 · 0⤊ 0⤋