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Why do Banks Fail? Economics Explained Interview with Professor Colliard

Economics Explained

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The FDIC's Decision to Make Sure All Deposits Are Secure

A lot of people are concerned now that, you know, they have made the decision obviously to make sure everyone's deposits are secure. And people are afraid that it's ultimately the taxpayer that's going to foot that bill. Is that correct? Or can you speak to how the FDIC actually makes its money to pay out in situations like this? Right. In good years, when you don't have bank failures, you accumulate money in the fund of the FDIC. And then when there is a bank failure, you use this money, basically to reimburse the depositors. So it's really an insurance mechanism. It's very much what an insurance company would do. Now the problem is

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