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.

https://www.fdic.gov/

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?

I want my deposits to be zero risk. They don;t make any money anyway. They should be safe.

It's not zero risk

abbreviating the federal reserve board doesnt make it more spooky ya know

The Federal Reserve Board. Yes, I know what that it.

fractional reserve banking

not federal reserve board

The only way your deposits are going to be zero risk is if you have a bank that doesn't do loaning.

and that is how a bank makes its money.

Fractional Reserve Banking - the idea that banks don't have to just sit on deposits?

And if there was such a bank they would likely charge higher fees

Or provide no intrest whatsoever

No, that's not what fractional reserve banking is.

That is where the government plays a legitimate role