> And without it you get occasional massive runs on banks FDIC doesn't prevent runs on banks. It only pays out after a bank is declared insolvent and there's n

> And without it you get occasional massive runs on banks FDIC doesn't prevent runs on banks. It only pays out after a bank is declared insolvent and there's nobody willing to buy the bank. Banks are regulated for good reasons which make them safer. But at the end of the day banks are in the business of transmuting unsafe long term debt into safe demand deposits.