Is it not a libertarian position that it is preferable that things be done in the private sector than in the public sector?

In the narrow statement that I replied to, a proposal was made to have the federal government enact a kind of insurance that has long been available in the private sector. My understanding of libertarian perspectives (based purely on hearing what libertarians say) is that doing it in the private sector would be preferable.

Particularly considering that the problem for the depositors was that they weren't availing themselves of private-sector solutions, not that those solutions failed.

I may be complete wrong on this, though, as I am not a libertarian.

There is no conflation: parent very clearly pits private deposit insurance (which exists today) vs. a hypothetical government insurance for amounts >$250,0000 (which doesn't exist, proposed by gp).

Perhaps I misunderstand the different strands of libertarianism, but what kind of libertarian prefers mandatory government insurance over voluntary private insurance?