I'm not exactly opposed to something like the FDIC. I actually think that the FDIC in theory has actually been effective. There was an interesting article that was posted. Detailing how we've had over 200 bank failures or something like that. The FDIC, particularly since 2000, their chief goal seems to be the consolidation of banks though. This seems to always be the MO. We have this financial institution basically falling apart.FDIC comes in, bales at the depositors, and then very, very quickly auctions us off to one of the larger banks.This is why we now have the big four as we think of them. This is why we have JP Mega as people
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The English word ‘bank’ meaning a depository and lending institution, derives from the Italian word ‘banca’, or ‘bench.’ This belies the origins of modern finance in Renaissance Italy, where deals initially struck at coffee house benches evolved into the great trading and banking houses of the Medicis, where double-entry book keeping enabled the matching of debtors with creditors that spurred the growth of industrial Europe over the coming centuries. Today, with daily capital flows measured in the trillions of dollars enabled by high-speed fiber optics and a global communications network, major decisions happen much more quickly, and because of the levered nature of fractional reserve finance, regional concern can magnify into global contagion faster than an actual pandemic. In the case of last weekend, where Silicon Valley Bank, one of the top-30 global banks went into receivership, the political institutions of the United States were caught off guard, and in an attempt to quell further concerns, went into overdrive this week as the Federal Reserve discount window was opened guaranteeing the assets of all major banks. Not to be outdone, the Swiss National Bank just intervened in the takeover of Credit Suisse, a century and half years old institution, to further halt panic in European markets. Memories of the 2008 financial crisis are on everyone’s mind, and the ripple effects of these events are surely to continue throughout the year.
