Today's "Bank Runs" resemble the US in the 1930's.
Depositors, frightened that their money will not be "there", rush to transfer their funds to cash - despite years of indoctrination that their money is "safe" as long as their account is FDIC insured and under $100,000 per account.
But in the midst of a nationwide credit crunch, there is still the fear that even "safe" money will be unavailable or only made available in inefficient quantities for the transaction of business or paying of bills. If people fear falling behind on their mortgage already just because rising fuel prices have strained their budget to the limit, there's no margin for error in paying bills in a timely fashion.
People want to eat on time and they don't want to be thrown out of their home because a Federal Regulator tells them "as soon as we figure out what's going on in a few weeks you'll get your money - but don't worry, it's SAFE!"
That's why for the first time in over a generation, we're seeing bank runs that resemble the 1930's.
Experts suggest that to avoid these problems, depositors should transfer their accounts at the first hint of problems... not after the problem has become front page news. This usually means consulting lists of under capitalized banks and requires more effort than individuals apply to their financial lives. Here is such a list of risky banks in Georgia but finding one for your particular community may be challenging, though worthwhile if you wind up avoiding trouble due to a "Bank Run".
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