I agree that the moderators did their job well. I don’t understand why Cavuto wanted to argue only with Cruz about the Bank America hypothetical. Cruz said he would let it fail. Then Cavuto went all lib and asked incredulously Really? You’d let all those small depositors lose all their assets?” And then wouldn’t allow a follow-up. The natural follow-up of course, is that the small depositors ARE protected by FDIC up to 200K. It is the hogs that get slaughtered.
Plus, Carson said about the same thing that it wouldn’t happen overnight. There are things you could do like let the depositors transfer solid assets to the strong second tier banks and institutions. Let the Goldmans eat their own.
This shows the wisdom of allowing at least 90-second response times in a “debate” like this.
Oldplayer
I agree with you. Cruz looked at Cavuto like, “what???” What Cruz should have said was that everyone is insured by FDIC up to $250,000 and they know that at the time they open their accounts. The gov’t should not be in the business of guaranteeing investments, and deposits greater than $250k are low yielding investments, but investments non the less.
I remember when savings and loans were tanking. I don’t remember exactly what happened, but I do know the gov’t won’t back up stock investments. People need to do their work and research the banks, stocks, companies they invest in. If some are guaranteed by the government, that is not fair to the rest of us. We already have FDIC to cover most people. When a joint account, it covers each person to that amount, so a married couple with a joint account is covered up to $500,000. If they need more insurance, buy it. Otherwise what stops people from getting the highest rate at the most irresponsible bank and just sticking taxpayers with the tab if the bank fails?