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Originally Posted by ThoughtAddict  Lack of confidence for banks leads to less assets and greater liabilities, as well as significantly decreased income and inability to obtain private financing. It is absolutely tied in with confidence. |
I definitely agree with you. Bank stability depends entirely upon confidence.
That, in my opinion, is the horrific danger of fractional reserve banking.
At this stage I don't see people remaining calm and confident about their banks for very much longer. Most people have already lost a lot of confidence in the Fed, and the problem will only snowball as things get worse.
I can't imagine how much the government and media would have to lie to us to convince enough people that the country is still financially healthy.