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.

No comments:

Post a Comment