If you truly believe this one bank is an isolated malignancy on top of an otherwise healthy system, backstopping makes perfect sense.
If this one bank is a symptom of a wider systemic malfunction, backstopping is the worst thing you can do.
Janet Yellen and Bitcoiners (like me) seem to disagree about which situation we’re in.
Seems like the misalignment of incentives could not possibly come faster or harder.
Can has been kicked - larger problems incoming. Eventually.
I’m not sure bailing this out is a good idea in either case. They mismanaged their risk terribly. Let’s not reward that. Bad ideas should have the freedom to fail.
I agree with you, personally. I was attempting to channel the thinking of those deciding.
I can see that. I think we both know the reverse is true. If the big boys are in trouble, we will inflate the currency however necessary to stop the bleeding. And that’s when things go completely sideways, and CBDC’s become the fix.
Is their a backstop for people who lose their Bitcoin?
