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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by bcrl on Sunday March 12, 2023 @09:07PM (#35129210)
The scheme of getting new depositors to pay out existing depositors is better known by another name: a Ponzi scheme.
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Re:Joint Statement by the Department of the Treasury, Federa... by tim-- on Sunday March 12, 2023 @09:18PM (#35129334)
Seriously, when you look into how banks are run, they really do start to begin looking like legal Ponzi schemes. https://www.bankrate.com/banking/cds/cd-ladder-guide/

They take your deposits, use a bit to pay other people's withdrawals, promise an unrealized gain to money held in your account that they might not be able to pay if everyone pulls out their cash at the same time...

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Re:Joint Statement by the Department of the Treasury, Federa... by ahepp on Sunday March 12, 2023 @10:34PM (#35130176)
The defining characteristic of a Ponzi scheme is that there is no underlying investment.

Most banks make sound underlying investments, but even in SVB’s case there were investments, they were just bad.

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