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A comment on Fed and FDIC discussing backstop to make SVB depositors whole, stem contagion. Parent comment

Re:Fed and FDIC discussing backstop to make SVB depositors w... by louloulou on Sunday March 12, 2023 @04:06PM (#35125517)
> Banks that may be otherwise solvent may become insolvent because of a domino risk of bank runs.

That to me implies the bank was never solvent in the first place. You could have easily created a bank that is always solvent, see the case of The Narrow Bank, but the Fed wouldn't allow it.

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Re:Fed and FDIC discussing backstop to make SVB depositors w... by anonuser123456 on Sunday March 12, 2023 @04:44PM (#35126020)
I don’t disagree with narrow banking. But the situation we are in is all based on the banking system we have today. And that banking system does have real systemic risk today.
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Re:Fed and FDIC discussing backstop to make SVB depositors w... by louloulou on Sunday March 12, 2023 @05:56PM (#35126814)
Sure, the monetary&banking system today is a corrupt clusterfuck that will inevitably collapse under the weight of all the unproductive debt that's built up. That's why I'm a bitcoiner.
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