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A group of individually solvent banks can still collectively fail if the banking system as a whole becomes too leveraged relative to potential withdrawal demand.
Drawn from what Lyn Alden said
What Lyn Alden actually said
- Lyn Alden Investment researcher and engineer who runs Lyn Alden Investment Strategy
Another way of putting it is that a collection of dozens of solvent well-run banks can still be broken as a group if they become greatly overleveraged compared to how many depositors want their money back at once.
Where this was said
↗Fractional Reserve Banking 101lynalden.com
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Added to korrents 20 Sept 2026 · How quotes work · Something wrong? Tell us
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