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The banking system isn't solvent if people can lose their money based on competing on-demand claims to the same cash. I honestly don't know why we don't shift t
by s_baar 18y ago
The banking system isn't solvent if people can lose their money based on competing on-demand claims to the same cash.
I honestly don't know why we don't shift to a time-deposit system. It would work nearly exactly the same in every way and we wouldn't need an FDIC as much or worry about bank runs.
- eru 18y agoSome of the apparent sight deposits already have some clauses that make them more like term deposits. I.e. I read the fine print on my savings account and that talks of certain limits and (mild) penalties for withdrawing too much money at once.