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Ep23 “When Banking Fails” with Amit Seru

All Else Equal: Making Better Decisions

00:00

The Instability of Investing in Risky Things

It's almost a miracle that we haven't seen more bank runs recently, I think. The key difference is all investors are treated the same. Investors who arrive at the post first are not treated differently to those who arrive last. So no investor has an incentive to run to the post. And that instability makes a bank a pretty stupid way to running an investment account.

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