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Yeah that all makes sense, but if we aren't going to prevent commercial banks from buying high risk securities, it also seems like the FDIC shouldn't be insurin
by wdewind 12y ago
Yeah that all makes sense, but if we aren't going to prevent commercial banks from buying high risk securities, it also seems like the FDIC shouldn't be insuring them.
- murbard2 12y agoThe whole point is that even if you prevent them from buying high risk securities, they will buy AAA rated commercial paper from ibanks that will. And surely you're not going to prevent a bank from making loans, that's their whole raison d'etre (safekeeping of money is incidental). Short of getting rid of central banking, I don't think you can do anything about this.
- wdewind 12y agoYeah, I am convinced. Thanks for a great conversation.