5 ms·

and stopping riots

by OnyeaboAduba 13y ago

and stopping riots

logicchains 13y ago
Name one historical instance of bank runs leading to riots.
- jmnicolas 13y ago
  Wasn't it the case in Argentina ?
  - logicchains 13y ago
    The riot was because the government froze deposits so people weren't allowed to withdraw money from the banks. My original (implied) point was that bank runs themselves don't necessarily cause the chaos they're made out to, so if anything this supports my case: if the government had allowed the bank to collapse, there may not have been riots.
    - Anderkent 13y ago
      I don't see how whether they cannot withdraw because the government blocked withdrawals or because the bank has no money to give away matters. The riots are caused by inability to withdraw money in any case.
      - logicchains 13y ago
        No, they weren't. To quote the Wikipedia[1] article on the riots: "The uprising was a predominantly middle-class uprising against the government of President Fernando de la Rúa, who had failed to contain the economic crisis that was going through its third year of recession". 1. http://en.wikipedia.org/wiki/December_2001_riots_%28Argentina%29 http://en.wikipedia.org/wiki/December_2001_riots_%28Argentin...
- jessedhillon 13y ago
  Argentina in 2001 following the implementation of the "corralito" fiscal policy. But this seems like a very pedantic quibble you have here.
  - logicchains 13y ago
    That wasn't the bank run causing riots. That was the government policy which froze deposits, to avert a bank run, that caused riots.
    - jessedhillon 13y ago
      I stand corrected, you weren't being pedantic at all. I guess all those people lined up outside the bank, ready to riot, were waiting for the government to give them their money back.
      - logicchains 13y ago
        To quote the Wikipedia[1] article on the riots: "The uprising was a predominantly middle-class uprising against the government of President Fernando de la Rúa, who had failed to contain the economic crisis that was going through its third year of recession". "The unrest started when Economy Minister Domingo Cavallo introduced restrictions to the withdrawal of cash from bank deposits, intending to stop the draining of deposits that had been taking place throughout 2001 and had reached the point where 25% of all the money in the banks had been withdrawn." People had were previously gradually withdrawing money over time.; no 'bank run' had occurred. The Corralito occurred, which among other political factors lead sections of the populace to riot. Read the article. 1. http://en.wikipedia.org/wiki/December_2001_riots_%28Argentina%29 http://en.wikipedia.org/wiki/December_2001_riots_%28Argentin...
- aestra 13y ago
  Customers turn violent as Zimbabwe bank runs out of cash http://www.independent.co.uk/news/world/africa/customers-turn-violent-as-zimbabwe-bank-runs-out-of-cash-9008890.html http://www.independent.co.uk/news/world/africa/customers-tur... Riots Hit Cyprus Bank After Accounts Frozen http://www.endalldisease.com/riots-hit-cyprus-bank-after-accounts-frozen/ http://www.endalldisease.com/riots-hit-cyprus-bank-after-acc... Panic of 1837 Moreover, the panic unleashed a wave of riots and other forms of domestic unrest. The ultimate result was an increase in the state's police powers, including more professional police forces.[17][18] http://en.wikipedia.org/wiki/Panic_of_1837 http://en.wikipedia.org/wiki/Panic_of_1837 Baltimore bank riot The Baltimore bank riot of 1835 was a violent reaction to the failure of the Bank of Maryland in 1834. The riot, which lasted from 6-9 August, was aimed at the homes and property of a number of former directors of the bank, who had been accused of financial misconduct and fraud http://en.wikipedia.org/wiki/Baltimore_bank_riot http://en.wikipedia.org/wiki/Baltimore_bank_riot
  - logicchains 13y ago
    The Cyprus riots were not due to a bank run; they were due to the government's decisions to prevent citizens from withdrawing their money. From the article you linked: "Riots are now being reported in Cyprus as citizens are furious at the Troika’s decision to rob the citizens to pay for the bad debts of banks." I'll give you the others, however. The fact that two are from over a century and a half ago however seems to support my implication that bank runs don't necessarily lead to riots (and more specifically, that not bailing out banks won't necessarily lead to riots).

and stopping riots

logicchains 13y ago

Name one historical instance of bank runs leading to riots.

jmnicolas 13y ago
Wasn't it the case in Argentina ?
- logicchains 13y ago
  The riot was because the government froze deposits so people weren't allowed to withdraw money from the banks. My original (implied) point was that bank runs themselves don't necessarily cause the chaos they're made out to, so if anything this supports my case: if the government had allowed the bank to collapse, there may not have been riots.
  - Anderkent 13y ago
    I don't see how whether they cannot withdraw because the government blocked withdrawals or because the bank has no money to give away matters. The riots are caused by inability to withdraw money in any case.
    - logicchains 13y ago
      No, they weren't. To quote the Wikipedia[1] article on the riots: "The uprising was a predominantly middle-class uprising against the government of President Fernando de la Rúa, who had failed to contain the economic crisis that was going through its third year of recession". 1. http://en.wikipedia.org/wiki/December_2001_riots_%28Argentina%29 http://en.wikipedia.org/wiki/December_2001_riots_%28Argentin...
jessedhillon 13y ago
Argentina in 2001 following the implementation of the "corralito" fiscal policy. But this seems like a very pedantic quibble you have here.
- logicchains 13y ago
  That wasn't the bank run causing riots. That was the government policy which froze deposits, to avert a bank run, that caused riots.
  - jessedhillon 13y ago
    I stand corrected, you weren't being pedantic at all. I guess all those people lined up outside the bank, ready to riot, were waiting for the government to give them their money back.
    - logicchains 13y ago
      To quote the Wikipedia[1] article on the riots: "The uprising was a predominantly middle-class uprising against the government of President Fernando de la Rúa, who had failed to contain the economic crisis that was going through its third year of recession". "The unrest started when Economy Minister Domingo Cavallo introduced restrictions to the withdrawal of cash from bank deposits, intending to stop the draining of deposits that had been taking place throughout 2001 and had reached the point where 25% of all the money in the banks had been withdrawn." People had were previously gradually withdrawing money over time.; no 'bank run' had occurred. The Corralito occurred, which among other political factors lead sections of the populace to riot. Read the article. 1. http://en.wikipedia.org/wiki/December_2001_riots_%28Argentina%29 http://en.wikipedia.org/wiki/December_2001_riots_%28Argentin...
aestra 13y ago
Customers turn violent as Zimbabwe bank runs out of cash http://www.independent.co.uk/news/world/africa/customers-turn-violent-as-zimbabwe-bank-runs-out-of-cash-9008890.html http://www.independent.co.uk/news/world/africa/customers-tur... Riots Hit Cyprus Bank After Accounts Frozen http://www.endalldisease.com/riots-hit-cyprus-bank-after-accounts-frozen/ http://www.endalldisease.com/riots-hit-cyprus-bank-after-acc... Panic of 1837 Moreover, the panic unleashed a wave of riots and other forms of domestic unrest. The ultimate result was an increase in the state's police powers, including more professional police forces.[17][18] http://en.wikipedia.org/wiki/Panic_of_1837 http://en.wikipedia.org/wiki/Panic_of_1837 Baltimore bank riot The Baltimore bank riot of 1835 was a violent reaction to the failure of the Bank of Maryland in 1834. The riot, which lasted from 6-9 August, was aimed at the homes and property of a number of former directors of the bank, who had been accused of financial misconduct and fraud http://en.wikipedia.org/wiki/Baltimore_bank_riot http://en.wikipedia.org/wiki/Baltimore_bank_riot
- logicchains 13y ago
  The Cyprus riots were not due to a bank run; they were due to the government's decisions to prevent citizens from withdrawing their money. From the article you linked: "Riots are now being reported in Cyprus as citizens are furious at the Troika’s decision to rob the citizens to pay for the bad debts of banks." I'll give you the others, however. The fact that two are from over a century and a half ago however seems to support my implication that bank runs don't necessarily lead to riots (and more specifically, that not bailing out banks won't necessarily lead to riots).