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by RyanMcGreal
5610 days ago
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"Too big to fail" is a classic perverse incentive, and a mockery of the idea that the financial industry can somehow self-regulate. Unfortunately, if you remove deposit insurance (or any of its variants), people's savings once again become subject to the self-fulfilling whims of insolvency or the unfounded rumour of insolvency. |
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I've heard that Canada didn't get deposit insurance until the 50s or 60s, well after the US.