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> broadcast that FDIC insurance is essentially unlimited Shouldn’t it be? The government is in the best position to regulate and manage the risk of these insti
by voisin 4y ago
> broadcast that FDIC insurance is essentially unlimited
Shouldn’t it be? The government is in the best position to regulate and manage the risk of these institutions. We cannot expect average depositors to be financial analysts with the capacity to assess financial institutions.
- xmonkee 4y agowhat’s stopping a bank from making really risky loans, give super high yields? Everyone will go to that bank since there is no risk to them?
- bandrami 4y agoBecause that's not how modern banking works. This isn't George Bailey lending out deposits; retail banks don't use deposited money at all it just kind of disappears.