Results 1 to 4 of 4
  1. #1
    ckok is offline Newbie
    • Member Info
      • Member Type:
      • Other
      • Native Language:
      • Turkish
      • Home Country:
      • Turkey
      • Current Location:
      • Turkey
    Join Date
    Sep 2011
    Posts
    14
    Post Thanks / Like

    Default a global run on banks

    "When the actual quality and real value of the mortgages in questionwere belatedly examined, they were suddenly repriced on a mass basis—
    triggering the credit crisis and bursting the housing bubble in the United
    States. The fact that they had been linked to a complex web of other
    computer- driven fi nancial transactions (collateralized debt obligations, or
    CDOs) led to the credit crisis, a massive disruption in the availability of
    capital as a basic factor of production in the global economy—essentially,
    a global run on banks. This led, in turn, to the Great Recession, the effects
    of which we are still struggling to escape."
    What does a global run on banks mean? Thanks in advance

  2. #2
    emsr2d2's Avatar
    emsr2d2 is offline Moderator
    • Member Info
      • Member Type:
      • English Teacher
      • Native Language:
      • British English
      • Home Country:
      • UK
      • Current Location:
      • UK
    Join Date
    Jul 2009
    Posts
    21,460
    Post Thanks / Like

    Default Re: a global run on banks

    When there's a run on the banks, it means lots of people go and withdraw their cash from their bank accounts. It's usually because they are concerned that the bank might fail or close and they would lose their money. A global run on the banks means that this effect happens all over the world.
    Remember - correct capitalisation, punctuation and spacing make posts much easier to read.

  3. #3
    SoothingDave is offline VIP Member
    • Member Info
      • Member Type:
      • Interested in Language
      • Native Language:
      • American English
      • Home Country:
      • United States
      • Current Location:
      • United States
    Join Date
    Apr 2009
    Posts
    8,896
    Post Thanks / Like

    Default Re: a global run on banks

    The important thing to note is that the bank can not possibly give back all of the money that each of its depositors has on account. Banks don't sit on money, they use it for loans and other investments. If everyone wants their money out of a bank, the bank will be unable to do so. Google "fractional reserve banking."

    This is only a cause for concern if something causes a panic and everyone rushes to the bank.

  4. #4
    Tdol is offline Editor, UsingEnglish.com
    • Member Info
      • Member Type:
      • English Teacher
      • Native Language:
      • British English
      • Home Country:
      • UK
      • Current Location:
      • Philippines
    Join Date
    Nov 2002
    Posts
    41,699
    Post Thanks / Like

    Default Re: a global run on banks

    There was a run on Northern Rock in the UK- savers were queuing up outside and they didn't have the money to pay them. It was the first time since the 19th century it had happened.

Similar Threads

  1. [Vocabulary] Downgrades of the banks. What exactly does this mean?
    By cubezero3 in forum Ask a Teacher
    Replies: 4
    Last Post: 02-Jul-2011, 17:40
  2. pet banks
    By Eartha in forum Ask a Teacher
    Replies: 1
    Last Post: 11-Jan-2011, 07:48
  3. piggy banks
    By blouen in forum Ask a Teacher
    Replies: 15
    Last Post: 10-Sep-2009, 21:43
  4. global processes / global functions?
    By Eway in forum Ask a Teacher
    Replies: 1
    Last Post: 21-Sep-2006, 09:16
  5. English Banks vs. British Banks
    By MW in forum General Language Discussions
    Replies: 8
    Last Post: 30-Jul-2004, 00:42

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Hotchalk