Barry, I agree, but I think what the BIS is trying to say is that the precious banking industry will have to be saved at any cost, whereas its OK for other investors, like you and me, to lose money.
Personally, I see nothing special about banks. This is a global economy,with lots of places to put your money.
If it is a country's stated policy to guarantee depositer accounts up to a certain amount, then it should do so up to that amount, because those are pre-established rules ofthe game.
Otherwise though, banks should be allowed to go bankrupt like everythign else. In fact, if the FDIC or similar gaurantor is required, banks shouldbe FORCED into bankruptcy.
If that happened, maybe the next bank would do something smarter. And the people that run such speculative lendors wouldn't continue to maximize their bottom line with the riskiest investments in BOOM times at the expense of everyone else in BUST times. |
