Not so long as the American taxpayer is providing guarantees on deposits, which we are. Given that, we should limit how much those funds can be put at risk, and also we should not be guaranteeing an institution to the size that it becomes ‘too big to fail’.
Well yeah, but we don't have a choice....I do see your point though.
Given that, we should limit how much those funds can be put at risk, and also we should not be guaranteeing an institution to the size that it becomes ‘too big to fail’.Yup, you nailed it...and that is my point....we don't have the choice.
So one instance of socialism requires another. It’s an old story.
Peter Schiff has made an argument against FDIC insurance of checking accounts. He says that absent the FDIC guarantees, we would shop around for safer banks. One might inquire about a banks investment policies, before setting up an account. Also, rating agencies would rate banks. The higher rated banks would probably advertise their ratings. The local news would be glad to report on bank investment risk, for those who tune in.
As it is, most people don’t care what the banks do with their money.