The system is designed to be a private scheme supported by a government which supports that scheme. That's the issue. Profits are privatized and losses are socialized. If deposit insurance becomes limitless as Yellen announced, then the issue is our kids will pay for this.

Re effective system: Maybe dinosaurs had to swallow rocks to digest their food, but we don't have to maintain this practice just so dinosaurs can keep existing. The system needs to be deprecated in favor of better tech that takes it out of the hands of dinosaurs. Legacy banking and gov/political class need to be replaced by a better solution.