darnzen on Nostr: Maybe a dumb question, but why wouldn't the FDIC just require banks to pay to insure ...
Maybe a dumb question, but why wouldn't the FDIC just require banks to pay to insure 100% of their deposits? Instead of just 250k?
I mean, I own a retail business and I pay to insure 100% of my inventory plus 3 months revenue.
The only reason I can imagine is that it would be so expensive that banks wouldn't be able to make a profit unless they reduced their risk. Maybe by reducing their leverage.
Somehow they con taxpayers to foot the bill or the citizenry through debasement.
I mean, I own a retail business and I pay to insure 100% of my inventory plus 3 months revenue.
The only reason I can imagine is that it would be so expensive that banks wouldn't be able to make a profit unless they reduced their risk. Maybe by reducing their leverage.
Somehow they con taxpayers to foot the bill or the citizenry through debasement.