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This is a monumentally bad idea. If there is infinity backstop, I will simply create a bank and lend millions to my friends and promptly go bust. They get pai
by pharmakom 4y ago
This is a monumentally bad idea.
If there is infinity backstop, I will simply create a bank and lend millions to my friends and promptly go bust. They get paid out by the government and I walk away. They do the same for me. We laugh at the poor taxpayer who foots the bill.
- Kye 4y agoThis won't happen for the same reason people most don't just burn their house/business down for the insurance payout. People lose insurance all the time this way even if they're just unlucky. Like any insurance company, the FDIC can and will drop a bank and isn't obligated to insure a new one if it's run by unreliable people.