"The forces of the market are just that: They are forces; they are like the wind and the tides; they are things that if you want to try to ignore them, you ignore them at your peril, and ... if you find a way of ordering your life that is compatible with these forces, indeed which harnesses these forces to the benefit of your society, that's the way to go." -- Arnold Harberger, University of Chicago Economist
Saturday, September 20, 2008
Want to understand what a bank run is?
The crisis we're experiencing in the financial markets is, in many ways, the 21st century version of a bank run or panic. It'll be a few weeks before we're ready to cover banking in class, but you can learn a lot about bank runs by watching this 7 minute clip from the 1940s movie "It's a Wonderful Life."