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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 lmm on Sunday March 12, 2023 @11:28PM (#35130619)
At this point we should just nationalize the whole banking system. Currently we have the worst of both worlds: privatised profits and socialised losses; strict regulations but limited oversight or appeal; no real market competition but no real voter influence either.
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Re:Joint Statement by the Department of the Treasury, Federa... by 0xB31B1B on Monday March 13, 2023 @01:30AM (#35131493)
we don't have "socialized losses". Tax payers aren't paying for anything here. The FDIC is run an funded by an interbank consortium. Its essential a union of banks that run a collective risk pool and decide the rules of the risk pool. It works and has worked for nearly 100 years.
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Re:Joint Statement by the Department of the Treasury, Federa... by lmm on Monday March 13, 2023 @01:57AM (#35131688)
> we don't have "socialized losses". Tax payers aren't paying for anything here. The FDIC is run an funded by an interbank consortium. Its essential a union of banks that run a collective risk pool and decide the rules of the risk pool.

What meaningful distinction are you drawing here? It's not practical to opt out of banking, and FDIC has no real competition (the NCUA offers exactly the same terms, and in the credit union thread fans were at pains to emphasise how equivalent to the FDIC it is). Not all taxes are collected by governments from individuals.

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Re:Joint Statement by the Department of the Treasury, Federa... by lostmsu on Monday March 13, 2023 @02:44AM (#35131979)
Cryptos?
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Re:Joint Statement by the Department of the Treasury, Federa... by hellojesus on Monday March 13, 2023 @03:07PM (#35140821)
People will be taxed for this through inflation. Where else does the money come from during a QT cycle?

I haven't looked into the details for how this will be paid, but that would be my initial guess.

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