Friday, 20 July 2012

Banks have no need for deposit insurance

The government has no need to keep giving money to the banks... and should stop doing so.

Deposit insurance is a 'silly' idea in that the government seeks to subsidise the (already powerful) banking sector. It is silly and not arrogant because the banks themselves are in a powerful position which means that in a sense the truth claim is coming from below. Other truth claims such as taxation are bad news for the recipient and clearly come from above. Taxation is not a gift to the recipient unlike deposit insurance which is good for banks.

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