Should the FDIC be abolished?

[Anarchist420]

I think it should've been, because it encourages banks to engage in risky behavior. The subprime mortgage crisis would not have been as bad had the banks not known that they had deposit insurance.

Personally, if we went back to "free banking", I would advocate for my state to do the following:
80% minimum gold reserve ratio
A signed contract by the banker and the depositor which is required to be submitted to the state legislature to receive a license to loan out a depositor's money.
Require banks that weren't money warehouses to explicitly say they aren't. If they don't, and a depositor reports them, then the deposits are transferred back to the owners and they then take ownership of the bank.
Depositor's bill of rights. It requires that if the banks go bankrupt (i.e., if they've issued a ratio of notes to gold deposits that exceeds 5/4) then the ownership of the bank is transferred to the depositors.
Bill of Anticorporate welfare: Unless the State legislaure unanimously consents to the same, there shall be no banking regulations other than allowing limited fractional reserve banking, and there shall be no bailouts.

What do YOU think?

 

[IronWing]

Opus had a big nose and small wings. That's what I think.

 

[feralkid]

From the valley of the jolly (Ho-H0-H0)...Corn Mountain!

 

[Genx87]

Absolutely not! FDIC insures depositors to a level. This builds confidence in the banking system. The issue with the mortgage crash had nothing to do with FDIC. Banks would still lend out money at the rate they did even without FDIC. The only difference would had been people with deposits in banks that went tits up would have lost their deposits.

 

[Schadenfroh]

FDIC should not insure as much as they do now, but it (or something similar) is necessary to build a sense of confidence in consumers and prevent a "run on the bank."

 

[IceBergSLiM]

Good Morning Troll bot, your are running a little late today I see.

 

[MotF Bane]

Should your posting ability be abolished?

Yes, immediately.

 

[Thump553]

What do I think? I think you don't have the slightest idea of what banking is or has been for hundreds of years. Is that a prerequisite to being a gold bug?

I don't know which is funnier, your concept of banks as "money warehouses" or your longing for the good old days of bank runs, collapses and panics every couple of years. It's like longing for the good old days before vaccines and penicillin because you don't like shots.

The FDIC has been an extremely effective and low cost (comparitively) solution

 

[kedlav]

Should your posting ability be abolished?

Yes, immediately.

I second this motion

 

[PottedMeat]

FDIC should not insure as much as they do now, but it (or something similar) is necessary to build a sense of confidence in consumers and prevent a "run on the bank."

did jacking it to $250k from 100 make much of a difference anyway?

 

[matt0611]

I am amazed after all this time, people still keep responding to this bot's troll threads.

He's got like 5 posts on the front page at all times.
I'm surprised a moderator hasn't done something about him by now.

 

[DaveSimmons]

I suspect it's the entertainment value -- when you see a loony troll title like "US Constitution: Are you still beating your wife?" you know who the OP is and that the contents will be something a little . . . different . . . from the normal P&N partisan bickering.

 

[KGB]

Am I the only one who clicks on his threads, blows right past his post just to read the responses?

 

[matt0611]

Am I the only one who clicks on his threads, blows right past his post just to read the responses?

Lol, nope

 

[ayabe]

My choice would be ribeye, it has the most marbling.

 

[piasabird]

That is all fine and dandy until it is your money that is in the bank that fails!

 

[her209]

I think it should've been, because it encourages banks to engage in risky behavior. The subprime mortgage crisis would not have been as bad had the banks not known that they had deposit insurance.

...

What do YOU think?

FDIC gives depositors confidence that they won't anything in their account balance under the insured amount. Having FDIC didn't incentivize banks to make risky loans. The capital used to make those risky loans were from the sale of securities that were backed by the mortgages. Those subprime mortgages themselves required the borrower to get private mortgage insurance (PMI).

 

[Anarchist420]

FDIC gives depositors confidence that they won't anything in their account balance under the insured amount. Having FDIC didn't incentivize banks to make risky loans. The capital used to make those risky loans were from the sale of securities that were backed by the mortgages. Those subprime mortgages themselves required the borrower to get private mortgage insurance (PMI).

I disagree. FDIC really shouldn't exist. What they should do is put a tax on commercial banks that combine with investment banks or at least require the banks to include in their ads something like "we gamble away your savings and depositors are SOL if we don't make money off of it" instead of forcing the tax payer to give them something that allows them to say that "we're FDIC insured".

 

[Infohawk]

I am amazed after all this time, people still keep responding to this bot's troll threads.

He's got like 5 posts on the front page at all times.
I'm surprised a moderator hasn't done something about him by now.

I agree completely and am disappointed that people get suckered into his garbage and that he's allowed to spam the boards. He slowed down for a bit but it seems like he needs a nice little warning to cool him down again. He will slowly push the envelope until he meets mod resistance.

 

[Slick5150]

I prefer putting honey on waffles instead of syrup. Anybody else?

 

[Lithium381]

I am amazed after all this time, people still keep responding to this bot's troll threads.

He's got like 5 posts on the front page at all times.
I'm surprised a moderator hasn't done something about him by now.

do you know how they stay on the top page? people reply to them pushing them to the top. people like this shmuk mat0611 keep bumping it to the top crying "his threads are always at the top!!!!"

 

[matt0611]

do you know how they stay on the top page? people reply to them pushing them to the top. people like this shmuk mat0611 keep bumping it to the top crying "his threads are always at the top!!!!"

Did I cry that his threads are always on the top? I said I'm amazed people keep replying to these threads (like he's anything other than a troll) and I only did it because his thread was already at the top.

 

[piasabird]

I dont think you can find that much Gold?

 

[Doppel]

I prefer putting honey on waffles instead of syrup. Anybody else?

Surprisingly, I've never tried it. I need to remember it as a backup. I love waffles, there is not much better than an early morning empty stomach filled up with two of those make-your-own found in hotels across the country.

I dont think you can find that much Gold?

Is this a question or a statement?

What are your thoughts on waffles? I like them with just syrup, as mentioned, and little else. Confectioner's sugar like I've seen at times makes them prettier and helps to remind that I'm about to get diabeetus, but I don't think it does much for the flavor as there's not much there.