The Glade 4.0

Good Thing or Bad Thing? And why?

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Just "a thing", neither inherently good or bad.

Some would argue that the creation of the FDIC restored the public's willingness to place their money back into banks, rather than in mason jars, and that those deposits created an environment by which economic growth could occur.

Others would point out that the "insurance" offered by the FDIC created a higher level of risk taking on the part of banks, because the money of their depositor's was protected (up to a certain level of course).

Some would also point out that the resources paid into the FDIC by the banks to support the insurance is capital removed from the system that could be better used in circulation.

I'm pretty sure I have seen Aizle make comments supporting the first, and you supporting the second Khross (and maybe the third).

So, is it the policies of the FDIC, or the original intent, to which you wish the question answered?

Good thing if managed right

Why do you say this?

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Because you asked?

Arathain:

No, seriously. Why do you think the FDIC is a "good thing if managed properly"?

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It's good for investors. If a bank goes belly up they get their cash. A voluntary program is no different from insurance from any other business you employ. I don't hire contractors that aren't insured, and I wouldn't put my life savings in a bank that wasn't insured.

Bad - it encourages risk, it also stops competition in banking insurance and offers a false sense of security to users (read their return policy).

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"...but there exists also in the human heart a depraved taste for equality, which impels the weak to attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom." - De Tocqueville

The FDIC is not voluntary. You are aware of this, right?

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What banking insurance existed at its inception to stop the competition of?

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

Yes, and I don't think it's managed properly.

Arathain:

Alright, then you're advocating for private insurance of deposits secured by individual banks on a contract basis?

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Yes, but I don't trust a regular insurance company not to go broke as well given the vast sums we are talking about.

I don't have a problem with it being backed by the federal government.