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The only thing we have to fear is fear itself!

Bank runs are quite often a crisis of unreason, and I think this one is mostly caused by poor communication. The contagion effect is as much a mental virus as it is an assessment of liquidity.

It's kind of obvious from this that either deposits should be guaranteed by law (because in practice FDIC does that now anyway) or the law has to prohibit banks from investing deposits (unless the account holder instructs the banks to do so, of course).