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Originally Posted by SamFarber View Post
FDIC covers the banks who have invested the deposits in the market, maybe? If the market goes down they won't have the money to cover the deposits, right?

True. And banks are increasingly investing because they make more money on the market than from their primary role as lenders, which is why we used to separate investment banks from savings and loan banks. That policy started after the great depression but was ended in 1999. This is part of the reason we had to bail the banks out, because the compounding shitstorm of all the money that could be owed due to such a crash exceeds the amount of money on the planet thanks to derivatives.
Old 08-24-2014, 05:11 PM pyramid is offline  
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