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If depositors split $1 million across multiple accounts, then they would be made whole with FDIC insurance for each account. If they have the same $1 million in
by orev 4y ago
If depositors split $1 million across multiple accounts, then they would be made whole with FDIC insurance for each account. If they have the same $1 million in one account, they’re still being made whole for the same amount. There’s literally no difference in the amount of money being paid back to them in either scenario.
- Clubber 4y agoIf they had split the $1m over 4 accounts and only 1 failed, there would be no need for a bailout. It's redundancy, something every tech person learns about pretty early on. It's hedging risk, something every finance person learns about pretty early on. It's basic, fundamental stuff in two disciplines. Fine it's an error, take your medicine. My problem is when the average Joe makes an error, they get the full force of the justice system coming down on them. Walk around the area, you'll see a bunch of them living in tents.
- s1artibartfast 4y agoIt seems like Im missing something. Is it accurate to say that you are mad the system, and not tech specifically? Afterall, VCs and tech workers aren't the ones locking people up. If anything, it seems like they are softer than average on crime. When I walk the streets in the bay area I see stolen cars and when I go shopping I see people flagrantly robbing stores. I don't like the account holder bailout either, but in reality, it has much less impact on me. The other banks will pick up the tab and I will probably see another nickel or dime in fees on my checking account.