If you’re too big to fail, you’re too big to exist. We should either let them fail (my preference, despite the pain) or bail them all out. But I also think that if we’re going to insist that there is a private entity that is too big to fail, it should be broken up until the pieces are not too big to fail.

Or it shouldn't be a private entity.

Better a private entity that needs bailing out with taxpayer money than one that is normally funded by taxpayers.

Socialise the risks, privatise profit.

To be clear: I think we shouldn't socialise the risks either. Just saying it's better than fully running it on taxpayer money.

Banking is basically nationalized now.

The government outsourced this responsibility to the Federal Reserve at the same time that a federal income tax began.

There are 3 main ways to balance a government budget. Spend less, raise more funds through taxes, or make the scale of debt decrease through inflation.

> Banking is basically nationalized now.

More like government is privatized

¿Por que no los dos?

Actually svb did fail. And flunk. The shareholders are wiped out. The employees are gone. Saving the depositors is an act of charity.

And if you save one bank, it restores confidence in the other banks against a bank run. Otherwise I was thinking of removing money in all banks combined.

Yellen just repeated the exact federal reserve policy, like every treasury sec/federal reserve chairman has done since forever. Kinda wild to define that as corruption, but to each their own.

Instead, why don't you look at how many people have lost uninsured deposits since the FDIC was created in 1933? You'll find its extremely low to nonexistent. Thats because while the FDIC has a 250k insurance limit, it does its absolute best to not use it- Usually by coordinating a bank sale or private-public rescue plan.