Top economist Mohamed El-Erian says unlimited deposit guarantee is hard to reverse after SVB fallout: ‘We are now in a different world’

Fortune ^ | 3/14/23

[BushCountry]

Dems had to protect their big tech-woke contributors.

[avital2]

this was to stop wider run - fdic can easily do an educational campaign reminding us of the insurance contract on cash savings accounts. since the regulators didn’t come down hard on bank mgmt pre-collapse this might have been the cheapest way to stem jitters. but it doesn’t change policy.

[motor_racer]

The rich are huge political donors and must be paid back.

[TimSkalaBim]

“Decision by regulators”… Just like that the law gets changed by a non-legislative body. Just another day in the post-constitutional era.

[JayGalt]

So there is no curb on mismanagement by liberal bank directors & managers. Someone else (taxpayers) is always there to pick up the tab. Where is this in the Constitution?

[GOPJ]

Progressive WOLE banks will be protected.

If banks citizens use fail we’ll lose everything. Biden and his goons know who butters their bread.

[SaveFerris]

[...that “we are now in a different world.”]

Not to worry.....everything is fine....ask KJP.......

On Twitter

On Twitter

[Sirius Lee]

but it doesn’t change policy.

Once you've set the precedent you're changed the policy.

[GOPJ]

Progressive WOKE banks will be protected.

If banks citizens use fail we’ll lose everything. Biden and his goons know who butters their bread.

[BobL]

“Top economist Mohamed El-Erian says unlimited deposit guarantee is hard to reverse after SVB fallout: ‘We are now in a different world’”

It’s also hard to reverse when the government leaves LOOPHOLES in their insurance schemes allowing them to bail out high-value political donors...but no, the media won’t go there.

[9YearLurker]

Did you not catch Biden’s 3-minute message?

And that is untrue. Those who we’re threatening a broader bank run could easily have been exposed as trying to protect their interests that had irresponsibly been compromised with deposits in an unhealthy bank beyond the guarantee level.

[wildcard_redneck]

When was this law passed by Congress?

[Alberta's Child]

I have been pointing this out for days. If a bank’s business customer has to worry about the $250,000 FDIC cap, much of the nation’s economy is going to grind to a halt.

You probably can’t even cover the biweekly payroll run for 50 employees with $250,000.

[TalBlack]

Predictable. There were a lot of dominoes lined up after SVB. Democrats are in the crosshairs of a collapse. Can’t have that. Do something other than the law allows like it’s not bing, like it’s no big deal.. Demonrat SOP.

[SaveFerris]

[Democrats are in the crosshairs of a collapse. Can’t have that.]

Like I said yesterday. They’re scared of a 1929 collapse on Joe’s watch. It will reveal what a joke this whole thing has been.

Could be an interesting couple of weeks coming up.

Seems more and more people are getting spooked.

I thought the cryptocurrency things were just the beginning. And I still think they were.

[Alberta's Child]

To be fair — the law in question includes exceptions that allow the regulators to do exactly what they’ve done. I have found that this is almost always the case when dealing with “post-constitutional” measures taken by the executive branch of the U.S. government.

[MCF]

I guess it is also now policy that before your bank/financial institution goes bankrupt to give everyone involved a big bonus. After all, all of the schmucks living from paycheck to paycheck just to scrape by, can just pony up a bit more to pay for it.

[E. Pluribus Unum]

The pyramid scheme has become a horizontal scheme.

[sauropod]

I heard the same point being made this morning on the radio. Kinda hard to put the genie back in the bottle, now.