There is a big difference between a bank and a Newspaper

Reader comment on: BAC and NYT

Submitted by Lyle (United States), Aug 28, 2011 10:41

If the newspaper goes chap 11 it just keeps publishing, a bank being in the end nothing but a big confidence scheme, (you put money in it assuming you can get it when you want it), if its viewed as shaky its subject to runs a la Bear Stearns and Lehman. (Yes these are "sophisticated" investors leading the run not the consumer, as before 1933, but they are runs nonetheless). So if a bank teeters it can fall very fast, whereas a newspaper will be a slow motion process.

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