Don't insure everything. Let depositors who want more insurance buy it from FDIC. Make it easy to buy and price it the same as FDIC now charges banks for the first 250 (a few bps per $100) and instead of running, nervous depositors will buy insurance. Cash will flow into FDIC instead of out.
I get the Limited Purpose Banking (LBS), but wouldn't that be deflationary? There's no way the
intelligentsia would ever acknowledge the terrible predicament that have gotten us all into. It looks to me it's going to be business as usual, create unlimited amounts of credit .
No, it wouldn't be deflationary, Jeff. Everyone could borrow but not the financial middlemen.
best, Larry
Don't insure everything. Let depositors who want more insurance buy it from FDIC. Make it easy to buy and price it the same as FDIC now charges banks for the first 250 (a few bps per $100) and instead of running, nervous depositors will buy insurance. Cash will flow into FDIC instead of out.
I get the Limited Purpose Banking (LBS), but wouldn't that be deflationary? There's no way the
intelligentsia would ever acknowledge the terrible predicament that have gotten us all into. It looks to me it's going to be business as usual, create unlimited amounts of credit .