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The proper call should be to increase FDIC insurance to 10mil or something then. It is incredibly unfair to be saying that depositors here deserve to be made w
by aeternum 4y ago
The proper call should be to increase FDIC insurance to 10mil or something then. It is incredibly unfair to be saying that depositors here deserve to be made whole because they are startup companies that somehow matter more to the economy.
Everyone agrees that shareholders and bondholders should we wiped out. Everyone agrees that deposits under 250k can and will be made whole due to FDIC. The disagreement if there is one is the 250k+, why should there be an exception just because these are tech startups?
- idopmstuff 4y agoI absolutely agree the FDIC limit should go way up. > The disagreement if there is one is the 250k+, why should there be an exception just because these are tech startups? That's not what I'm suggesting, nor is it what I think most people who think depositors should be made whole are suggesting. In basically any bank run scenario in which depositors had behaved reasonably (which is like 99% of companies putting their money in banks), I would support depositors being made whole. Regardless of the specifics of the situation, I think the upside of maintaining our collective faith that bank deposits are safe is much larger than the downside of whatever needs to be done to achieve that.