I don't understand how the public benefits from having the true weaknesses of companies hidden. If the Fed were truly acting in the public's best interests, it

I don't understand how the public benefits from having the true weaknesses of companies hidden. If the Fed were truly acting in the public's best interests, it would want you to have as accurate view as possible. Of course, the theory is that somehow this would undermine confidence in banks. But the opposite is actually the case. Banks would have to maintain reserves and lend wisely in order to get your deposits. Especially if you could actually lose your money. Instead, everything is covered up until the government can no longer hide how bad it is. But don't worry, you're insured, right? Yes. But it turns out you're insured by you the taxpayer, so you're even more screwed now than you would have been if you had incentive to use your judgement and the clarity to see what was going on. Smokescreen government at its worst. And all because banks tend to collapse when bad government creates massive instability in the economy to begin with.