2023-04-11 -- Ernest Hancock interviews John Sneisen on economic/market cond, history of bank runs M

John Sneisen (The Economic Truth) comes on the show to discuss The History of Bank Runs: Panic and Crisis in the Financial World

Hour 1 - 3

Media Type: Audio • Time: 139 Minutes and 0 Secs

Guests: John Sneisen, ,

Topics: Economic and Market Conditions, The DOW Code

Hour 1 - 3

Media Type: Audio • Time: 139 Minutes and 0 Secs

Guests: John Sneisen, ,

Topics: Economic and Market Conditions, The DOW Code

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PODCASTS

1 - John Sneisen (The Economic Truth) comes on the show to discuss The History of Bank Runs: Panic and Crisis in the Financial World

John's previous interviews HERE

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PODCAST 1

John Sneisen

CEO at The Economic Truth John Thore Stub Sneisen is the founder of the non-profit organization, The Economic Truth. The Economic Truth has over 10,000 followers in 30+ countries. His organization analyzes current economic events, the monetary system, and geopolitical events from an objective standpoint.

John is a Leadership Council member at Freedom Force International. Which is an organization that promotes and educates individual and economic freedoms. It currently has members in 78 countries. Members include Robert Kiyosaki, Alex Jones, Mike Adams, Chaterine Austin Fitts and many other leaders in many venues of activism working for freedom to individuals.

John is a contributor to World Alternative Media with economic reports and is featured in the upcoming mini documentary on inflation and paper money.

John is passionate about teaching people how our monetary system is deemed to fail and how you can protect yourself from the certain failure. He educates people about alternative systems and promote freedom and volunteerism. He predicted that the Quantitative Easing from Central Banks around the world will create deflation, but he is also seeing that in a panic this might end up causing hyperinflation. He predicted the move of Switzerland, Denmark and Sweden with negative interest rates and the many rate cuts by central banks around the world not interest rate hikes which many experts called for. Webpage: https://theeconomictruth.org/

Reports here: https://odysee.com/@TheEconomicTruth:a:

John's previous interviews HERE

SHOW NOTES/REFERENCES:

1. The History of Bank Runs: Panic and Crisis in the Financial World

https://theeconomictruth.org/f/the-history-of-bank-runs-panic-and-crisis-in-the-financial-world

April 5, 2023|Financial Crisis, Geopolitics, Markets, Money

Bank runs have been a recurring phenomenon throughout the history of modern banking systems, often resulting in significant economic and social consequences. A bank run occurs when a large number of depositors withdraw their funds simultaneously due to fears that their bank is insolvent or on the verge of collapse. This mass withdrawal can become a self-fulfilling prophecy, as the bank may not have enough liquid assets to cover all the withdrawals, leading to its eventual failure. This article provides an overview of the history of bank runs, examining their causes, effects, and the measures taken to prevent or mitigate them.

Early Instances of Bank Runs

One of the earliest recorded instances of a bank run dates back to 1343, when the Florentine banking house of Bardi failed due to the default of a significant debtor, the English Crown. This event led to a wave of panic among depositors, who rushed to withdraw their funds.

In the United States, bank runs occurred sporadically throughout the 19th century, with one of the earliest examples being the Panic of 1819. This financial crisis was precipitated by the collapse of the Second Bank of the United States, which caused widespread panic and a surge in bank runs. Another notable example was the Panic of 1837, which resulted from the rapid expansion of credit and speculation in the preceding years, ultimately causing numerous banks to fail.

The Great Depression and its Aftermath

The most infamous period of bank runs in modern history occurred during the Great Depression of the 1930s. The economic downturn resulted in widespread unemployment, falling incomes, and a sharp decline in the demand for goods and services. As people and businesses struggled to meet their financial obligations, the number of loan defaults increased, leading to a crisis of confidence in the banking system.

Between 1930 and 1933, more than 9,000 banks in the United States closed their doors as a result of bank runs. The most well-known bank run during this period was the one depicted in the 1946 film "It's a Wonderful Life," in which the protagonist, George Bailey, struggles to prevent a run on his small-town bank. In reality, the situation was far grimmer, with bank failures leaving many people penniless and contributing to the severity of the Depression.

In response to the widespread bank failures, the United States government introduced significant reforms to stabilize the financial system and restore depositor confidence. The Glass-Steagall Act of 1933 separated commercial and investment banking activities to reduce risk, while the establishment of the Federal Deposit Insurance Corporation (FDIC) provided government-backed insurance for bank deposits, reducing the likelihood of bank runs.

Post-World War II Era to the Early 21st Century

The post-World War II era saw a period of relative stability in the banking system, with few instances of bank runs. This was due in part to the new regulations put in place following the Great Depression, as well as the growth of the global economy.

However, bank runs reemerged in the 1970s and 1980s, often as a result of changes in the financial landscape and deregulation. For example, the failure of the Penn Square Bank in Oklahoma in 1982 led to a series of bank runs and the eventual collapse of several large banks. Similarly, the savings and loan crisis of the 1980s and 1990s resulted from deregulation, risky investments, and fraud, leading to numerous bank failures and runs.

REST OF ARTICLE HERE

2. JUST FOR REFERENCE - FYI:

World Economic Forum - Young Global Leaders