[causality0]

Insuring 100% balances is fine, it’s up to them to set premiums and banking policy directly.

I disagree. Why should everybody suffer higher fees, higher loan interest rates, and lower savings interest rates so that a small number of rich people can be stupid with where they put their money? If your business puts its money in the hands of reckless yahoos and can't pay its salaries it should have to get a loan to do so until it can get its deposits back from the failed bank.

Every time we remove a piece of accountability we inject permanent stupidity into the system.

[notch898a]

What the fdic just did was insure 100% at a "systematically important" bank while charging a special assessment to all the banks, even if the same designation and thus extended insurance did not apply to them. It's the worst of both worlds.