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This is actually a thoughtful response.FDIC guarantees your bank account up to something like 250,000?
Let me propose 2 scenarios
1. You bank account is not guaranteed by the government
2. It is
In Which of these scenarios would you do more due dilegence in the banks business practices, reputation, risk taking etc.
do you think some of the bad behavior like the sub prime loan stuff would be able to happen if people had any concern their deposits were at risk?
Does fdic insurance really protect the consumer or just let the banks engage in riskier behavior?
I think it kind of does both. The fractional-reserve banking system alone probably encourages risky behavior on the part of banks.