Message from @DrYuriMom
Discord ID: 528696255438782464
Bridges - fine investment
There was no money to spend
Not if people would have wanted other things
The banks were in shambles
Of course there was.
The economy was frozen for lack of money
Banks in shambles was in large part due to government.
They weren't in shambles in Canada
There is no such thing as lack of money
Indirectly, because the gov't didn't regulate banks effectively
That shows a complete misunderstanding of what money is.
Specifically the crash forced people into a saving mentality
The regulation is what lead to the problem. The Fed.
People were trying to get their money from banks that had no money to return to their depositors.
The banks had invested in things that evaporated.
Poof, no money.
where they didnt want to spend because they were unsure about their situation as a whole
People didn't save because they didn;t trust banks
Money only "disappears" due to fractional reserve banking
The FDIC exists today, and has saved us from similar issue since, because of Roosevelt response to the Depression.
FDIC is a bad policy
Didnt really save us from the housing crash
It subsidizes bad bank behavior
It monopolizes risk
It prevents regular citizens from losing everything
Instead of individuals taking bank behavior into account like they did prior.
No, it doesn't.
They didn't take bank risk into account. That's why so many people lost everything.
It happened over and over again, but not since the FDIC
They couldn't when the government regulated the hell out of everything and the Fed took over.
They really shouldnt have bailed out the companies
They clearly didnt need it
I'm not defending the companies, but I am speaking up for depositors.
What didn't? Bank runs certainly happen. And before FDIC there was private insurance and banks would cover one another.
There's a difference between depositors and investors.
Yes, one is the hostage taker and the other is a hostage
But bank failures still happened and people were out their deposits
Depositors are screwed by government allowing FRB and making that standard. It is no longer on anyone's mind to understand what deposits are.
How many people know what FRB is?
How many people know that deposit accounts are investments?