SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Wyätt Gwyön who wrote (70892)10/3/2006 9:43:27 PM
From: bart13  Read Replies (1) of 110194
 

like any complex system, i think one can make arguments either way--it's not totally cut and dried.

but when you consider how clueless the average person is regarding finances, it is unreasonable to expect ordinary people to know which banks are "good" and which aren't.

that isn't my attempt at moralizing; it's reality. if you don't have protection for depositors, they will "take the money and run". you end up with situations like Japan, where there are bank runs and people keep safes in their houses with hundreds of millions of yen in them. that's no way to run an advanced economy.

...


I think its more cut & dried than is apparent.

Very true that the average person is clueless in the area, but that's also the point - they do not have to be educated when the nanny state will bail them out. When uneducated behavior is rewarded or not penalized in some way, one gets more uneducated behavior. That's reality too.

I view the folk in Japan who keep safes in their homes as saner than the ones who don't - they have a central bank and banking system that let credit and financial institutions run totally amok, and also pretty much openly manipulate their currency and stock market. No question that its not a way to run an advanced economy in the financial area - again my real point too.

It says a lot that the most popular savings institution in Japan is their Post Office.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News