Myth of the 20th Century cover image

BANKING CRISIS – After Dark

Myth of the 20th Century

00:00

The FDIC's Calculus Might Have Been - You Might as Well Keep Your Deposits There

The FDIC tried to forestall a banking run by telling everybody that even if your deposits are uninsured, we're going to cover them anyway. They kind of succeeded in that but didn't succeed in ensuring that nobody would absolutely hammer the stock price of every regional and mid-sized bank in the country. Anyone who had a stock to get hammered got hammered. The federal government is really stepping in and saying that nobody is allowed to fail really in the banking sector. It doesn't make any sense other than there's a tremendous fear or something of general bank failure.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app