3 ms·
That gives value to the banks, not to the currency. I could create my own currency and give you the exact same guarantees as the FDIC (since I can always print
by icebraining 7y ago
That gives value to the banks, not to the currency. I could create my own currency and give you the exact same guarantees as the FDIC (since I can always print more), yet that wouldn't give it value, because all you get is more units of the same thing.
If you disagree, I have some $IBs to sell you, and an insured account to store them!
- pmiller2 7y agoNo, it doesn’t give value to the banks. Banks only have value because you can use them to store and borrow money which has value. Your theoretical bank has no value because your theoretical currency does not, either. FDIC insurance reinforces the value that banks (and the currency one can access through them) already have.