We wouldn’t need FDIC if banks could be trusted.
Discussion
True True
Well. People inherently can’t be trusted, hence bitcoin
You can absolutely trust banks will NOT have your money!
Also if we don't generate boom cycles, we don't have to have contractions where money has to disappear from the system.
It is already a dead idea to fix an issue by doing the issue more.
An Einstein quote perfectly fits here:
The amazing irony here is the FDIC was established as part of the same banking act that included Glass-Steagall. FDR really pulled a number on this country
In my opinion, FDIC is not needed. Banks can pay for their own deposit insurance, and accept the scrutiny from insurers that would accompany it. Or depositors can be more prudent about whom they lend their money to. The FDIC just creates moral hazard.