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>they're being punished for not having the money put somewhere it could grow faster.

No, it's because they didn't properly manage their assets to serve existing depositors if those depositors wanted to withdraw. Locking up money for 10 years has obvious liquidity consequences. I knew that when I first learned what a "CD" is when I was like 10.



In that sense, no bank maintains 100% liquidity to handle withdrawals from every account holder.

What I'm having a hard time wrapping my head around is what the investors saw that made them decide to all withdraw at once.




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