If you are rich and sophisticated, the government is always there to rescue you from your mistakes.
Once again, capitalism is only for the poor. For the rich, socialism.
$svb
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635243604716441600
What should have happened? The law is pretty clear. If you are below 250k, you enjoy deposit insurance. If you have more, you receive a certificate staring with the deposit you had. The FDIC liquidates the assets and figures out how much to pay you. If it can, it makes you whole.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635244701984129025
We are increasingly moving to a world where all deposits are guaranteed, up to any level.
We need to recognize this and extract the consequences: we have these institutions, banks, making bets with the house money: heads they win, tails we (taxpayer) lose.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635245442605932545
This must stop. The banking system we have created is unstable, probe to cronyism, unequal, fake.
We need to think again: narrow banking is the only solution. See the Chicago Plan https://en.m.wikipedia.org/wiki/Chicago_plan
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635247191345491976
Such a system is politically corrosive, economically extremely inefficient, pure moral hazard. And leads to the most illegitimate form of income inequality: these guys LOBBIED for no regulation, and then come crying about their bad luck. https://www.levernews.com/svb-chief-pressed-lawmakers-to-weaken-bank-risk-regs/
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635247188921188352