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99% of customers don’t have the financial knowledge to do due diligence on their bank. Just look at the thousands of comments posted today on these various thre

99% of customers don’t have the financial knowledge to do due diligence on their bank. Just look at the thousands of comments posted today on these various threads for proof. For the average customer, due diligence should begin and end with “is my bank FDIC insured?”

ETH_start 4y ago
You don't need specialized knowledge. You just need to have the motivation to seek out sources that aggregate and distill knowledge. When people buy TVs, cars, fridges or shop for a laser eye surgery procedure, they seek out credible third party assessors, in the form of Wikipedia articles, Consumer Report magazines, end user ratings, etc to inform their decisions. The collective intelligence of the consumer market will also increase as more people participate as price and quality conscious consumers.
anon291 4y ago
99 percent of consumers have bank balances below 250k
- nerdponx 4y ago
  Many businesses need more than $250k in cash to cover payroll, many of which are not large sophisticated institutions that have the expertise to look into the risk management practices of any bank they might be interested in.
  - anon291 4y ago
    Businesses do not have rights to exist or engage in commerce independent of the individuals which constitute them. That is to say, if business X did not do risk management because it is small and unsophisticated, it is okay to let business X wind down, whereas it is not okay to let a human go hungry because they are unsophisticated. Humans have rights, Businesses do not. I'm as conservative as they come (look at my post history), and I am flabbergasted by people from both sides of the aisle who honestly, truly believe businesses have a right to exist, including welfare for when they are unable to. When it comes to human life, given by God, we are obligated to spend almost any amount that we can in order to preserve that life. When it comes to business existence, we are not. By all means, welfare programs should immediately be expanded to help the individuals affected (including the business owner) to not go hungry, or be without medical care. By no means should the business continue to operate via welfare magic. Hopefully, for the business owner, the individual welfare availability will give him/her some time to get back on their feet and potentially start the business again with new capital if needed. But the source of that capital is not a concern of the government. That's for the private market.

ETH_start 4y ago

You don't need specialized knowledge. You just need to have the motivation to seek out sources that aggregate and distill knowledge. When people buy TVs, cars, fridges or shop for a laser eye surgery procedure, they seek out credible third party assessors, in the form of Wikipedia articles, Consumer Report magazines, end user ratings, etc to inform their decisions. The collective intelligence of the consumer market will also increase as more people participate as price and quality conscious consumers.

anon291 4y ago

99 percent of consumers have bank balances below 250k

nerdponx 4y ago
Many businesses need more than $250k in cash to cover payroll, many of which are not large sophisticated institutions that have the expertise to look into the risk management practices of any bank they might be interested in.
- anon291 4y ago
  Businesses do not have rights to exist or engage in commerce independent of the individuals which constitute them. That is to say, if business X did not do risk management because it is small and unsophisticated, it is okay to let business X wind down, whereas it is not okay to let a human go hungry because they are unsophisticated. Humans have rights, Businesses do not. I'm as conservative as they come (look at my post history), and I am flabbergasted by people from both sides of the aisle who honestly, truly believe businesses have a right to exist, including welfare for when they are unable to. When it comes to human life, given by God, we are obligated to spend almost any amount that we can in order to preserve that life. When it comes to business existence, we are not. By all means, welfare programs should immediately be expanded to help the individuals affected (including the business owner) to not go hungry, or be without medical care. By no means should the business continue to operate via welfare magic. Hopefully, for the business owner, the individual welfare availability will give him/her some time to get back on their feet and potentially start the business again with new capital if needed. But the source of that capital is not a concern of the government. That's for the private market.