In that tiny little part of my brain that vaguely understands economics, a theory arose today.
There were reports flying around all day saying the FBI had been investigating possible fraud at the collapsed Indy MacBank. No real details. Just rather vague references.
Aha, said my skeptical, economically challenged brain. The feds started the rumor in an effort to counter the threat of more bank runs and more collapses. Everyone knows that bank runs usually start because people start fearing bank runs. It’s the old self-fulfilling prophecy. And we’re teetering on the brink. If one bank has fallen, can the others be far behind?
So rather than fuel the fire, the feds decide to ice it. Plant the rumor that Indy MacBank was already in big trouble and being investigated for fraud. Nothing to do with the current economic situation, you see; it all started a long time ago. No need to worry.
Hey, I warned you. I’m no economist. But I am one helluva cynic.