The power of economists

Today we could see a striking example of the power and responsibility of economists. Today a Dutch bank fell after a bank run that was running for a week but the outflow of savings seemed to stop in the weekend leaving the bank in a critical but stable situation. However, when past night the news hit the public that there were liquidity and solvency problems, people started withdrawing savings again on a large scale and the bank fell. Although the bank was already negatively in the news for a while, the initial start of a huge outflow of savings seems to be the television appearance of an econometrist who called upon the clients to withdraw their money from the bank.

His goal was to benefit customers who are suffering  from excessive lending by the bank. If and how these people will benefit remains to be seen. What is sure however, is that the customers cannot reach their money at the moment and that some of the clients lost their money. With great power comes great responsibility also applies to economists…


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