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Immunised from Banking Lurgy? Ep 335 David Tripe

NZ Everyday Investor

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The Bank Run

When interest rates go up, the value of those securities went down. The ability for these banks to be able to do that meant that they were forced into cashing things which had gone down in value. It's very much a classic case of a bank run. What the US authorities have done is they've actually stepped in and paid out and sold the good bits of the bank to a bank from North Carolina. There we go. We're kind of like unsecured creditors. Is that pretty much correct? You'reunsecured creditors ... unless there is some intervention of some sort, it can take a very long time with the cash to be freed up. That in a banking case

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