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vlsdo t1_jcnxh7t wrote

I think it might be a bit like phase transitions in supercooled fluids, for example. You drop the temperature slow enough (in this particular case it's interest rates going up instead of temperature going down) that the water ends up in this very precarious equilibrium. The tiniest disturbance or impurity initiates a phase transition to ice, and that spreads across the entire liquid.

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Westcork1916 t1_jctyauo wrote

This is a great analogy. What we saw in the past three waves was a handful of failures that triggered a "flight to safety". Customers started moving their money to safer places; i.e. larger banks or liquid assets. That left smaller banks without the required capital reserves, which led to more failures and more withdrawals.

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