Unlimited Deposit Insurance: Risks and Implications

This chapter explores the potential impact of unlimited deposit insurance on banking practices, historical guarantees for depositors, and the moral hazards associated with such a system. It discusses the recent banking crises, public trust issues, and the role of government interventions, questioning the necessity for reform in light of past financial bailouts. The conversation emphasizes the need for a shift in narrative and accountability within the financial system while examining the complexities related to asset management and market discipline.