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"Here's a parallel example: the FDIC exists to insure bank deposit holders up to $100k (formerly $250k, but oh well). Now, with the FDIC, you have every incenti
by GFK_of_xmaspast 13y ago
"Here's a parallel example: the FDIC exists to insure bank deposit holders up to $100k (formerly $250k, but oh well). Now, with the FDIC, you have every incentive to ignore your bank and assume that your deposits are safe. What about without the FDIC? Maybe you're more concerned with how your bank invests your money. Maybe you ask to see their balance sheet. Maybe you see how disastrously over-leveraged they are and take your money elsewhere. If that happens enough times, look at all the financial crisis you SUDDENLY DON'T HAVE."
On the other hand, recorded history.