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In the long run and averaged among many individuals that may be true but in the short run and on an individual basis allowing banks to regulate themselves is a
by Regnore 4y ago
In the long run and averaged among many individuals that may be true but in the short run and on an individual basis allowing banks to regulate themselves is a sure fire way for some people to unfairly lose a lot of their accumulated worth.
- eru 4y agoIn practice in eg the 19th century, the very lightly regulated banking of Scotland and Canada was much safer than the US's and England's more heavily regulated banking sector. In the 20th century it got even worse, with (effectively government backed) deposit insurance becoming popular: it removed most of the incentives customers had for regulating the safety of their banks.