I suppose that this bailout will make bank runs less likely on other banks, but I think this downplays the fact that this bailout still causes bad incentives for banks and depositors who now know that their deposits are essentially fully guaranteed by the U.S. government, once again privatizing profits while socializing risks.
I suppose that this bailout will make bank runs less likely on other banks, but I think this downplays the fact that this bailout still causes bad incentives for banks and depositors who now know that their deposits are essentially fully guaranteed by the U.S. government, once again privatizing profits while socializing risks.
I suppose that this bailout will make bank runs less likely on other banks, but I think this downplays the fact that this bailout still causes bad incentives for banks and depositors who now know that their deposits are essentially fully guaranteed by the U.S. government, once again privatizing profits while socializing risks.