Earlier quoted context omitted.
In a way, there are two questions at work here. The first question is whether you can have rent-a-cops throw a passenger off a plane after they have taken their seat. As I understand it, that is not legal. The second question is about over-booking more broadly. After all, though there's a legal distinction between a passenger a second before boarding and a second after, from a customer service standpoint they're stil…
I'm basically against overbooking, but playing devil's advocate: is it that hugely different from fractional reserve banking? They claim you can get your money out at any time, but that's not the case if everyone tries at once.
I'm fairly certain retail banks can borrow from the FED to mitigate that.