Replying to Avatar jimmysong

The last people that should be blamed are the people withdrawing money from a defunct bank. They're the rational ones exposing the insolvency of the bank.

Instead, politicians are blaming them for causing more mistrust of the system. This is what people in power think about, conserving their position and making enemies of anyone that would threaten that, no matter how just their position.

Your leaders don't care about truth or justice. And they will gladly support lies and injustice to gain power.

They're all Nietzcheans now.
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Melvin Carvalho 2y ago

The word "deposit" occurs nowhere in a banking contract.

What you have in a bank is "bank credit". This is a share in the bank's assets. Mortgages, car loans, other potenciality toxic assets. It's a junk bond. You have a degree of "insurance" but the insurer doesnt have the money to cover the losses. And if the insurance pays out to you, you would be unfairly taking it from others.

Importantly bank credit is worth at most parity, and potnetially much less (same as all "stable" coins).

Withdrawing money is a winning trade, because you get cash, which is worth parity. It's a free arbitrage.

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