3min chapter

Crypto Critics' Corner cover image

The FDIC, Infinite Insurance, and Moral Hazards (Feat. Rohan Grey)

Crypto Critics' Corner

CHAPTER

The Problem With Banks Leveraging Deposits

"I spoke with Frances Coppola and she said, the problem is, is that banks always have to leverage deposits somehow. If they won't do it by lending, then they'll do it some other way," he says. "My view on this would be give all the banks an unlimited overdraft of reserves at 0%. And that sounds like a big handout."

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