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The banks are doing fine right now and there are no real signs of a mass departure into crypto. Sounds to me more like the SVB and FTX failures lit some fire u
by bioemerl 4y ago
The banks are doing fine right now and there are no real signs of a mass departure into crypto.
Sounds to me more like the SVB and FTX failures lit some fire under the regulators asses and they're now starting to crack down on the bad dealings they've been ignoring.
- I_am_tiberius 4y ago>The banks are doing fine right now It doesn't matter what people do. What matters is, that banks can't give deposited money back to its customers. It's just a bad system if a bank run can crash the entire system. Without switching from QT to QE again and bailing out customers two weeks ago, America may look much worse today.
- bioemerl 4y agoBanks can never give back all deposited money at a moments notice. That's normal. What matters is that assets outpace liabilities and you've got insurance on your deposits. Fed's doing its job. It'll be fine.
- I_am_tiberius 4y agoYou're viewing the world as if modern monetary theory is the only option. Banks can give back all deposited money to its customers! Instead of investing deposited money, they just need to keep it deposited and request a fee from customers for this service. Like banks did 100 years ago. The fractional reserve banking system is just very bad and causes financial crises such as this one.