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A run on the bank begins when the public begins to suspect that a bank may become insolvent. As a result, individuals begin to withdraw their savings. This action can destabilize the bank to the point where it may in fact become insolvent. Banks retain only a fraction of their deposits as cash (see fractional-reserve banking): the remainder is issued as loans. As a result, no bank has enough reserves on hand to cope with more than the fraction of deposits being taken out at once, and will 'call in' the short term deposits itself has made. This can cause a shortage of Market liquidity in the short term money market.

As a bank run progresses, it generates its own momentum. As more people withdraw their deposits, the likelihood of default increases, so other individuals have more incentive to withdraw their own deposits. If many or most banks were to suffer runs at the same time, then the resulting chain of bankruptcies can cause a long economic recession.

To prevent bank runs, Central banks can prevent financial institutions from failing by:

• Deposit insurance systems insure each depositor up to a certain amount, therefore the depositors' savings are protected even if the bank fails. This removes the incentive to withdraw deposits simply because others are withdrawing theirs if consumers trust the insurance system.
• Central banks act as a lender of last resort. To prevent a bank run, the Central Bank guarantees that it will make short-term, high-interest loans to banks, to ensure that, if they remain economically viable, they will always have enough liquidity to honour their deposits.
• Reserve ratios and Tier 1 capital thresholds both limit the proportion of deposits which a bank can loan out.

The Greater São Paulo has the largest gross metropolitan product in South America.

The economy of South America comprises approximately 434 million people living in the 12 sovereign states and three dependent territories of South America, which encompasses 6 percent of the world's population. South America ranks fifth in terms of nominal GDP by continent, behind North America and after Oceania.

South America has two major trade blocks: Mercosur and the Andean Community. Brazil is the largest economy in South America in terms of Nominal GDP, it has a vast and diverse economic landscape encompassing agriculture, manufacturing, services, and natural resources. Due to Brazil's major economy, it has a large influence over its neighbors, and even globally. Argentina which is South America's second largest economy, boasts a rich history of industrialization and a well-developed agricultural sector. Despite economic challenges and very high inflation, Argentina uses its abundant natural resources and skilled workforce to drive economic growth and innovation. Together, Brazil and Argentina serve as economic powerhouses and as such, are major influences to surrounding countries. Uruguay stands out as it boasts the highest GDP per capita in the region. Renowned for its stable political environment, strong social welfare system, and diversified economy, Uruguay has consistently ranked among the top nations in terms of human development and standard of living. Uruguay has a large agriculture sector and has made previous strategic investments in technology and innovation, Uruguay's economy thrives on both domestic consumption and international trade. Guyana ranks second which is attributed to its oil and gas sector. (Full article...)

"At Toyota, we began to think about how to install an autonomic nervous system in our own rapidly growing business organization. In our production plant, an autonomic nerve means making judgments autonomously at the lowest possible level; for example, when to stop production, what sequence to follow in making parts, or when overtime is necessary to produce the required amount.

These discussions can be made by factory workers themselves, without having to consult the production control or engineering departments that correspond to the brain in the human body. The plant should be a place where such judgments can be made by workers autonomously.

In Toyota's case, I believe this autonomic nervous system grew as the idea of just-in-time penetrated broadly and deeply into the production field, and as adherence to the rules increased through the use of kanban. As I thought about the business organization and the autonomic nerves in the human body, the concept began to interconnect, overlap, and stir my imagination."

—Taiichi Ohno, Toyota Production System, English edition of 1988

• ... that Malaysian businessman Lim Kok Wing was depicted as "King of Africa"?
• ... that Eliane Capobianco's election to the Bolivian Constituent Assembly reflected the propensity of the country's agribusiness elites to occupy positions that granted them influence over land reform policy?
• ... that Selling Mother's Milk is a book which discusses the 18th-century practice of some parents in France giving their children to wet nurses for a year or more?
• ... that New Zealand politician Hamish Campbell is a cancer researcher and runs a flower-delivery business?
• ... that Gerald Willis, after working as a bus driver at age 15, started a business that earned $2 million per year and built a replica of the Hermitage after watching The President's Lady?
• ... that the developer of Citizen Sleeper was inspired by the feeling of people coming together and their own experiences as a non-binary person struggling to make ends meet through the gig economy?

August 24:

• 1857 - The failure of Ohio Life Insurance and Trust Company followed by the Panic of 1857.

• ...that in the United States of America the largest reserve requirement for commercial banks is 10% of liabilities?

• ...that the United States Federal Reserve System uses six monetary aggregates as components of the money supply?

• ...that an open market operation is an activity by a central bank to buy or sell government bonds on the open market?

• ...that, although nominal USA national debt has been steadily increasing since 1940, Debt-to-GDP ratio was actually higher during WWII than it is now?

• ... that the United States debt ceiling has been steadily raised since 1981?

• ... the Federal Reserve owns the largest share of the USA national debt?

• ...the term petrodollars was coined by Ibrahim Oweiss to describe dollars that did not circulate inside the United States, and therefore were not part of the normal money supply, and instead were received by petroleum exporting countries (OPEC) in exchange for oil?

• July 21: Technological University Dublin senior lecturer Dr Lorcan Sirr speaks to Wikinews on housing market in Ireland
• July 15: California governor signs new state budget, eligible Californians to get stimulus payments
• July 4: 130 OECD countries agree to back global corporate tax rate
• June 30: 'Each makes the other more difficult to recover from': University of Sussex professor L. Alan Winters speaks to Wikinews on trade, COVID-19, Brexit
• June 16: Wikinews interviews Victor Kline, leader of newly registered The New Liberals party in Australia
• April 23: Irish Finance Minister Donohoe criticises OECD's global minimum corporate tax rate
• April 17: People protest in Berlin against German Court overturning five-year rent cap
• March 5: Chancellor Rishi Sunak announces UK budget 2021
• February 10: Disney to shut down Blue Sky Studios, animation studio behind 'Ice Age'
• January 24: World Trade Organization declares US tariff hike illegal, rules in South Korea's favour