Why rumors are a bad thing....
By now every ram, arun and vijay ( Indian versions of Tom, Dick and Harry ) where ever he is, would be quite aware of the financial "situation" in the world. So what happens when a big financial institution crashes..?? People fear that other institutions will collapse as well. In a financial setup, set backs are common when something major like this happens. But are all fears justified...? Definitely not.. Sometimes they just make matter worse. Like the rumor that a major Indian bank - ICICI - was doomed because they had invested in American banks. So what happened was that people began to rush to the banks and ATMs to withdraw their hard earned money..!! But the way a bank functions, its not possible to return everyone's money within a day..!! NO bank can do that..!! Definitely not possible..! A bank doesn't keep all the money it collects from its customers, in their vaults. They circulate and invest it..! How else are they able to give you an interest on your dep...