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41
Trudeau is ending use of the Emergencies Act. (twitter.com)
posted 4 years ago by YesMovement 4 years ago by YesMovement +41 / -0
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– WhoIsThatMaskedMan 25 points 4 years ago +25 / -0

All of the big Canadian banks are too heavily leveraged to be able to absorb that. They've borrowed huge amounts with using money in people's accounts as collateral, and people just yanked millions of dollars out of those accounts.

This is an extremely important point that not enough people know. Most banks are extremely leveraged, which is to say they have a lot of debt and not much money. They make money by taking your money and investing it elsewhere. What this means is when you deposit $1000, the bank almost immediately spends it all on an investment. When you then withdraw it, the bank is actually out a thousand dollars until the investment pays off.

Bank runs are a legitimate way to fight back, because it puts them in a terrible situation. They have no money, and now you're asking them for money that they legally cannot deny you (unless you're a truck driver, apparently). So now they have to go even deeper into debt in order to satisfy your legal right to your own property.

If enough people do this simultaneously, the bank is going to take a hit of many millions of dollars. If enough people do it simultaneously and for a long enough period of time, the bank is going to fail.

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– alucard13mmfmj 2 points 4 years ago +2 / -0

Its why banks closes when shit hits the fan and inflation sky rockets. Everyone pulling out money at once to gtfo.

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