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No bank can survive 20% of depositors wanting their money over 3 months.

Those long-term assets (aka loans) aren't guaranteed, realisable to pay creditors nor of fixed value.



> Those long-term assets (aka loans) aren't guaranteed

They can be sold to the Federal Reserve at its discount window. That's a founding reason for the Fed's existence. Ensuring liquidity crises don't prompt solvency ones.


Socialised losses for private gain is acceptable I guess?




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