Originally Posted by embersyc
How well do you know history? Why the **** would anybody use a bank if not for this guarantee? The entire banking industry would be history if not for the FDIC.
No it wouldn't! Banks would have to be more careful with what they do with peoples money, and people would have to be more vigilant with the banks they choose. The banking industry would be MUCH stronger without government guarantees. It's the guarantees that create the moral hazard and allow the banks to behave in ridiculous fashions with our money, you know, the type of things liberals blame on deregulation! Well no, it's regulation that causes that problem.