ImmediateLobster1

ImmediateLobster1 t1_jcp5h2y wrote

Your numbers are right, but one item is important: He didn't even lose the $50M. He just lost access to the $50M for a short period of time. The FDIC is guaranteeing all depositors will get their money back (normally they "only" guarantee the first $250,000 in an account, but in this case they're covering everyone).

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ImmediateLobster1 t1_j78h9lp wrote

Just wanted to add another real world example: the coolant system in automobiles does this all the time. That system is essentially a closed loop system. The radiator cap acts as a pressure regulator, and allows fluid to expand into the coolant tank when the pressure rises high enough. The likelihood of pressure is why there are big warnings on your radiator cap telling you to not open it when the engine is hot. If you do, the pressure drops and all that really hot water inside can suddenly decide to turn into really hot steam that will then spray out at you.

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