The only difference is that in the TradFi world, people can rely on deposit insurance and the banks can rely on liquidity by the Fed in case of such a bank run event.
But of course only at the cost of continuous credit expansion... history will tell how that story ends. :D
100% agreed.
The only difference is that in the TradFi world, people can rely on deposit insurance and the banks can rely on liquidity by the Fed in case of such a bank run event.
But of course only at the cost of continuous credit expansion... history will tell how that story ends. :D
Yes - great point, Jonas.
great article, thanks!