Bank Runs - What Are The Real Risks? | Dr. Judy Shelton
Bank Runs - What Are The Real Risks? | Dr. Judy Shelton
Liberty and Finance: 3-22-2025
Dr. Judy Shelton, former economic advisor to President Trump, discusses the risks and psychological factors associated with bank runs, emphasizing how rumors can escalate depositors to flee even otherwise solvent institutions.
She weighs in on a possible audit of US gold reserve at Fort Knox, and critiques recent government bailouts, questioning the long-term impact of deviating from laws like the Dodd-Frank Act to protect large depositors.
Dr. Shelton also critiques the role of organizations like the CFPB, arguing that depositors should be financially literate and understand the risks involved in banking.
She highlights the growing reliance on non-bank institutions for financing, especially by small businesses, as banks focus more on government debt.
The interview concludes with a mention of her book, "Good as Gold," and its insights into monetary policy and economic risks.
INTERVIEW TIMELINE:
0:00 Intro
2:30 Fort Knox audit
6:30 London gold outflows
8:50 Dodd-Frank act
19:50 Who's protected?
25:25 Bank runs
30:30 Understanding banking risks
