> It's important that the corner bank be under scrutiny because everybody knows you're supposed to put your money in a bank There's actually a certain chicken-

> It's important that the corner bank be under scrutiny because everybody knows you're supposed to put your money in a bank There's actually a certain chicken-and-egg aspect to this, where "everybody knows to put your money in a bank," and is unsophisticated (i.e. uneducated) about banking, because the government promises to bail you out if the bank loses your money. It's really not hard to get a sense of a bank's safety from a combination of the interest rates it pays (high rates are a danger signal) and third-party services like Weiss Ratings. No one bothers though, because why even care whether your bank is safe or not?