The financial crisis in recent years challenged many widely-held assumptions, including an assumption of innocence for ‘cash and cash equivalents.’   The fearful crowd lost confidence generally, and rationally, given the leverage in the system, resulting in a widespread run on the bank.  But we aren’t in Kansas anymore, Dorothy.  This isn’t Jimmy Stewart’s banking system.

The complexity and breadth of ‘cash’ instruments has blossomed with financial market innovation in recent decades — not always for the good.