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Bank run more of a stroll

By Marcie Geffner · Bankrate.com
Monday, December 20, 2010
Posted: 9 am ET

"December the 7th, 2010. Let's withdraw our money!"

That's the proclamation that was bannered across the Bankrun2010 website and called the world's citizens to remove their money from banks earlier this month.

The campaign hasn't been all that successful, and the idea certainly may seem more likely to cause harm than good. But the fact that even a few have embraced this cause so sincerely is nonetheless an intriguing sign of how much hatred some have built up against the financial system.

Here are two of the group's statements, quoted directly from the website:

• The overwhelming majority of holders of a bank accounts, savings accounts or even a pension plan, are unaware the way money is created or what the banks are doing with the money that they are given. They know nothing about the principle of money as debt. They do not know the reality behind words like "asset bubbles," "Treasury bills," "Hedge Funds" or "securitization." Hence the media in general make little effort to inform in an objective, transparent and accessible way to all. The only thing the public really understands is that most major financial crimes and insider trading remain mostly unpunished, but they are the first to pay the consequences.

• We want banks that lend only the wealth they have. Banks that help small and medium enterprises to relocate jobs, &  bank lending at zero rate. Banks that support projects that benefit citizens rather than the "market." Banks where we can deposit our money, which will then create a peaceful conscience within ourselves. Banks we will not have to be worry about. Banks whose success will sound the death knell of the merchants of death, disease and slavery. On the ruins of the old system, we want to build a banking system that will no longer sacrifice more human dignity on the altar of profit.

For the record, the movement claims to be decentralized and nonpolitical; the organizers are European, writing English as a second language; and the campaign seems to be ongoing, despite the lack of support at the starting gate.

So, could a bank run ever be a good idea?

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1 Comment
bankrunwatch
December 20, 2010 at 11:20 am

Your question regarding bank runs is primarily a question of awareness. Most of us have been led to think that our savings are safe in a bank, and there is no risk involved. Unfortunately this is far from the truth - when one understands the meaning of "fiat money", "fractional reserve banking" and the "money multiplier" you begin to realise that traditional banks are the last place you should keep your savings!
As your title suggests people are strolling to the bank and withdrawing their savings in greater numbers.... the running will only happen when it is too late.