Earlier quoted context omitted.
TIL, unless you explicitly disable memory overcommit, it can and will overcommit. This is crazy to me.
So, uh, how do you feel about fractional reserve banking? Nearly all banks worldwide practice it. Statistically, it's not impossible that the entire world financial system could collapse due to uncorrelated bank runs.
The problems caused by the feds failure to lend to First Bank of America during the Great Depression are well understood by the central banks.
What would likely happen is the overnight rate would go up to 12%, and additional money would be printed to cover withdrawals for the month or two most people would be willing to forgo 12% interest in a potentially inflationary economy.