Re:Money creation in the modern economy (2014) [pdf]
by vkou on Thursday September 09, 2021 @06:20PM
(#28475325)
> Eehhhhhhh........ Sounds like that isn't working out so well is it? x)
Over the past 88 years, not a single penny of FDIC-insured money has ever been lost in a bank collapse... And when a bank collapses, non-FDIC-insured money also finds a way to not evaporate. The biggest bank bust in history - Washington Mutual, with $300 billion under management collapsed in 2008. Not a penny of its depositor funds, insured or not, were lost.
Meanwhile, in the three years prior to the establishment of the FDIC, over 9000 banks collapsed, collectively losing $140 billion dollars of depositor money.
One of the most important jobs of the federal government is maintaining confidence in the banking sector, because without it, we'd all be living in a Mad Max hellscape, trading bottlecaps for ammunition.
Over the past 88 years, not a single penny of FDIC-insured money has ever been lost in a bank collapse... And when a bank collapses, non-FDIC-insured money also finds a way to not evaporate. The biggest bank bust in history - Washington Mutual, with $300 billion under management collapsed in 2008. Not a penny of its depositor funds, insured or not, were lost.
Meanwhile, in the three years prior to the establishment of the FDIC, over 9000 banks collapsed, collectively losing $140 billion dollars of depositor money.
One of the most important jobs of the federal government is maintaining confidence in the banking sector, because without it, we'd all be living in a Mad Max hellscape, trading bottlecaps for ammunition.