Originally Posted by
allodial
From a perspective of social prosperity, the FDIC makes little sense. That is, what is the true basis behind the idea of licensing a corporation (already offering limited liability on the State's tab) to take, say, $500,00 and be able to close up shop and run and dump the loss on the same people that were robbed. Are U.S. banks typically given (A) license and encouragement to plunder a society vs (B) license and encouragement to prosper a society?
Underneath it seems that someone's fancy idea was that no one would want to be in the banking business unless they could gouge eyeballs and such blood out of skulls with impunity--i.e. greed would be the only motivator? What's wrong with collecting service fees only? If I take a taxi on a 10 mile trip to a business meeting that brings me $10M/week--does the taxi company get a 15% commission? Why should a bank get any large commission simply for providing glorified security, secretarial and accounting services? Keep in mind the taxi driver provided security in some sense too!