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The FDIC and other schemes to intervene in the case of bad banks allows banks to get so huge they can't be allowed to fail. Then everyone needs to pay for the i

by nonbel 7y ago

The FDIC and other schemes to intervene in the case of bad banks allows banks to get so huge they can't be allowed to fail. Then everyone needs to pay for the idiots who put their money into bad banks. In fact, it becomes smart to put your money in these poorly run banks since they will make more money on riskier activities but get bailed out when the same fail... Many people are dissatisfied with this situation.

JumpCrisscross 7y ago
> Many people are dissatisfied with this situation As am I. But the carnage in cryptocurrencies is a reminder that the status quo beats anarchy or random stabs in the dark. A human tendency with inefficient systems is to throw out the baby with the bathwater. There are reasonable discussions to be had around reforming and renewing the FDIC to be more friendly to new entrants.
- nonbel 7y ago
  >"As am I. But the carnage in cryptocurrencies is a reminder that the status quo beats anarchy or random stabs in the dark." The situation with bad cryptocurrency exchanges failing does not remind me of that at all. It is far superior since only the people who leave their money in the bad exchanges get punished. Under your preferred system I get held hostage even though I can see clearly something is wrong.