Ask people who lived throught the Great Depression when the banks closed and they lost everything. Many banks never re-opened.
They got the idea from the Banksters. Basically, when one of the member farms was up for foreclosure, they would turn out a crowd of people to bid on everything up for sale and basically buy everything back for pennies on the dollar and return it to the farmer. The debt and foreclosure thus discharged, the banks had no further recourse.
I asked him what happened when outsiders came to the auction to scoop up bargains. He told me they would take them quietly to the barn or other outbuilding where a noose was dangling from the rafters or, sometimes, a freshly butchered hog was hanging on a meat hook. They were then asked if they really felt it was a good idea to bid with all the Holiday Association members there. Most of the time, they took the hint and left. If they stayed, it was to observe and not to bid.
Years ago I worked with a woman whose parents had a narrow squeak with that. She heard her parents discussing whether they should buy a car that weekend or wait until the following week. The father decided to buy the car that Friday, withdrew their entire savings, $600, and bought the car. The following Monday Roosevelt closed the banks and the other savers lost all their money.