That bizzaro world of deposits bearing risk is the one we’ve all been knowingly living in for the entire history of banking. The FDIC is a modern intervention

That bizzaro world of deposits bearing risk is the one we’ve all been knowingly living in for the entire history of banking. The FDIC is a modern intervention that protects most personal and small business accounts from needing to consider that risk. Clearly, some people who grew up in the shadow of that insurance protection failed to learn about this “bizarro” world that they lived in and made uninformed choices when they suddenly came into money. But the world never changed, just the naiveté of the people making deposits.