I am not sure about this one. Anyone who wants to put his savings in a money market mutual fund can already do so. OTOH, many people, myself included, want to keep funds in liquid form without worrying about valuation. I have a lot of money in several accounts at a small regional bank. The accounts are less than $250,000 each. I am happy with the situation and do not want to see it change.

I have investments in money market mutual funds, and I also own treasury securities directly. I just don't see how your proposal helps me.

Further, who will lend money to businesses and consumers in your system. How will they be funded?

What I think should be done is to adopt a less ad hoc and more structured insurance system How about this: for the first $250K, just like now., fully insured, the next 250, 99%, 500 to 1 million 98%, 1 to 2 mil 97%, 2 to 5 mil 96%, 5 to 10 mil 95% over 10 90%. FDIC should allow large depositors to buy back the deductible for a premium based on the yield on the deposit.

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Prof Kotlikoff - Can you point to other experts, like yourself, that support your idea of transforming all financial institutions into mutual funds?

A return to Glass Steagall and putting limits on what interest banks can pay, which i know you hate, would insure more safety to the core banking system. Right?

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