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Some do though. Having a lot of money in a checking account doesn’t mean someone is any more sophisticated with respect to finances. It could be retirement savi

Some do though. Having a lot of money in a checking account doesn’t mean someone is any more sophisticated with respect to finances. It could be retirement savings or an inheritance. No one should wake up one day and find out most of their life savings or inheritance is gone because of banking shenanigans. This is not like a hurricane or catastrophic expensive surgery. This is entirely preventable and fixable by the government. Gov’t sells low yield bonds to banks during pandemic => gov’t jacks up interest rates to fight inflation => value of bonds previously sold to banks plummet => bank marks bond values to market and is now technically insolvent causing a bank run => grandma loses majority of her life savings => government refuses to reimburse depositors above FDIC limit even though it created the problem to begin with. That is not a chain of events I am ok with. Bank management and equity holders should get wiped out but not depositors.

CrimsonCape 3y ago
We have a de-facto two class system: the capitalists and "everybody else class". The capitalist class, those with capital, investments, stake (a la stakeholder), who mobilize lobbying on behalf of and to protect their capital, who will 99.99% of the time have the ultimate impact on legislation; the impact being positive effects on themselves at the cost of everyone else in the general public. I'm not sure we can even get a vote on the floor that would have detrimental effects on the former class. The legislation is preordained. You are proposing that bank management and equity holders get wiped out, not the general public checking account-holder; how would that even be possible, since they write the rules, pull the strings, lobby, etc. magnitudes more than you? They are the rulebook. They do so to such an extent that the entire system is predicated on everybody agreeing to do the same thing lest the system collapse.
flerchin 3y ago
No Grandmas, not a single one, have taken a haircut, much less losing life savings. Thus far, only bank investors have been impacted, and that seems likely to continue.

CrimsonCape 3y ago

We have a de-facto two class system: the capitalists and "everybody else class". The capitalist class, those with capital, investments, stake (a la stakeholder), who mobilize lobbying on behalf of and to protect their capital, who will 99.99% of the time have the ultimate impact on legislation; the impact being positive effects on themselves at the cost of everyone else in the general public. I'm not sure we can even get a vote on the floor that would have detrimental effects on the former class. The legislation is preordained. You are proposing that bank management and equity holders get wiped out, not the general public checking account-holder; how would that even be possible, since they write the rules, pull the strings, lobby, etc. magnitudes more than you? They are the rulebook. They do so to such an extent that the entire system is predicated on everybody agreeing to do the same thing lest the system collapse.

flerchin 3y ago

No Grandmas, not a single one, have taken a haircut, much less losing life savings. Thus far, only bank investors have been impacted, and that seems likely to continue.