What Bank Run? See This Google Search Trends Chart

True it’s only anecdotal evidence, but I’m pretty sure people search Google about FDIC insurance when they’re worried about their bank going bust.

What you see on this chart is a bank run precursor, the starting gun getting cocked.  All someone has to do now is blink and the run is on.  Doesn’t matter if it’s a false start or not once a run starts, the outcome becomes inevitable.

As discussed for months by Nouriel Roubini (see here for some of his articles and references on my blog and see here for a Bloogberg radio interview with him last week).

Note, there are solutions to this problem, as discussed by Roubini. It starts with the government increasing FDIC insurance immediately (a temporary increase to $250,000 FDIC insurance was signed into law on Friday) and also recapitalizing banks (more than buying bad assets).

UPDATE: 2008-10-5: Forbes: Germany announced Sunday that it would guarantee all private bank accounts, joining Ireland and Greece in taking drastic independent action to ward off financial crisis.

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