When Michigan Shut Its Banks
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Banking panics aren’t pretty. Imagine hundreds of depositors, frightened that their savings are about to be erased, rushing to the sidewalks around the institutions rumored to be failing, pushing toward the tellers' cages and pleading for withdrawals.
Then they learn the money isn't there. The cash is tied up in illiquid investments, inventories and homes. Fear spreads. Soon, perfectly sound institutions are besieged by desperate people who want their money back.