Putting your money in a bank appears to be a good idea. Depositors do, however, lose faith in banks from time to time. In Chapter 14, we learned that when a large number of people lose faith in a bank at the same time, it is referred to as a â€bank run,†and when this occurs in a large number of banks at the same time, it is referred to as a â€bank panic.†” Runs and panics usually occur as a result of the realization that banks may have made bad loans and may not be able to provide depositors with access to their funds. So itâ€TMs clear that keeping your money in a bank carries some risk.

Would you join a bank run if your bank was experiencing one, or would you be confident that the FDIC would be there to protect your account?
Because the European Union lacks a unified banking system (among other reasons), most European banks do not offer deposit insurance. Would you be more, less, or equally likely to participate in a bank run if you had a bank account in Europe?
Would you feel safe if it was a panic instead of a run? If so, why or why not?