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> Banking left unregulated turns into this mess time and time again. And yet, regulated banking also turns into a mess time and time again.

deleted 4y ago
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threeseed 4y ago
Depends on your country. In Australia, our banks are among the most regulated and survived through the GFC with barely a scratch. Regulation is proven to work in the financial system. You just need to make sure you have enough of it which often the US hasn't. But in recent years that has been fixed up. Also it's a false comparison. There is one Tether and tens of thousands of banks.
vkou 4y ago
Into a mess for who? Depositors? Could you summarize how much money depositors across the entire United States lost to bank busts over the past, say 40 years? And how does it stand up, compared to the crypto-of-the-month scams, losses, and exchange busts?
- jpmattia 4y ago
  > Could you summarize how much money depositors across the entire United States lost to bank busts over the past, say 40 years? Nominal or actual? Just the Federal Savings and Loan crisis + the TARP bailouts were billions from the dilution of dollars. And that's just the US.
  - vkou 4y ago
    The FSL crisis was caused by wild-west deregulation, accounting practices which have since been banned, and resulted in a thousand convictions. The crypto space is repeating all the same bullet points, except with more outright fraud, with less accounting, and without any convictions.
    - jpmattia 4y ago
      > The FSL crisis was caused by wild-west deregulation, accounting practices which have since been banned, and resulted in a thousand convictions. I'm guessing you did not live through it: Like 2008, there were many causes. See eg the wiki: https://en.wikipedia.org/wiki/Savings_and_loan_crisis#Causes https://en.wikipedia.org/wiki/Savings_and_loan_crisis#Causes But you also missed the heart of the matter: Money that was lost in the US, despite it having a regulated banking system.
      - JumpCrisscross 4y ago
        > was lost in the US, despite it having a regulated banking system This is a straw man. Nobody claimed nobody in a regulated system ever loses money.
        jpmattia 4y ago
        > Nobody claimed nobody in a regulated system ever loses money. Only if you read the above questions literally and miss his meaning: > Into a mess for who? Depositors? > Could you summarize how much money depositors across the entire United States lost to bank busts over the past, say 40 years?
        JumpCrisscross 4y ago
        The S&L crisis was a “crisis” because non-bank S&Ls lost money in a way depositors haven’t. You have still not pointed to a single American depositor losing money since 1982, though I’d extend that to the post-War era.

deleted 4y ago

[deleted]

threeseed 4y ago

Depends on your country. In Australia, our banks are among the most regulated and survived through the GFC with barely a scratch. Regulation is proven to work in the financial system. You just need to make sure you have enough of it which often the US hasn't. But in recent years that has been fixed up. Also it's a false comparison. There is one Tether and tens of thousands of banks.

vkou 4y ago

Into a mess for who? Depositors? Could you summarize how much money depositors across the entire United States lost to bank busts over the past, say 40 years? And how does it stand up, compared to the crypto-of-the-month scams, losses, and exchange busts?

jpmattia 4y ago
> Could you summarize how much money depositors across the entire United States lost to bank busts over the past, say 40 years? Nominal or actual? Just the Federal Savings and Loan crisis + the TARP bailouts were billions from the dilution of dollars. And that's just the US.
- vkou 4y ago
  The FSL crisis was caused by wild-west deregulation, accounting practices which have since been banned, and resulted in a thousand convictions. The crypto space is repeating all the same bullet points, except with more outright fraud, with less accounting, and without any convictions.
  - jpmattia 4y ago
    > The FSL crisis was caused by wild-west deregulation, accounting practices which have since been banned, and resulted in a thousand convictions. I'm guessing you did not live through it: Like 2008, there were many causes. See eg the wiki: https://en.wikipedia.org/wiki/Savings_and_loan_crisis#Causes https://en.wikipedia.org/wiki/Savings_and_loan_crisis#Causes But you also missed the heart of the matter: Money that was lost in the US, despite it having a regulated banking system.
    - JumpCrisscross 4y ago
      > was lost in the US, despite it having a regulated banking system This is a straw man. Nobody claimed nobody in a regulated system ever loses money.
      - jpmattia 4y ago
        > Nobody claimed nobody in a regulated system ever loses money. Only if you read the above questions literally and miss his meaning: > Into a mess for who? Depositors? > Could you summarize how much money depositors across the entire United States lost to bank busts over the past, say 40 years?
        JumpCrisscross 4y ago
        The S&L crisis was a “crisis” because non-bank S&Ls lost money in a way depositors haven’t. You have still not pointed to a single American depositor losing money since 1982, though I’d extend that to the post-War era.