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View Diary: Bank Run in Cyprus, Will it Spread to Southern Europe? (322 comments)

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  •  Fundamentally bad message to send (0+ / 0-)

    "the message to the public is to not blindly put money in banks without reqard to that bank's balance sheet quality."

    The public has no good way to monitor that.

    Publicizing that a bank is in trouble does no good -- it just starts a run on the bank.

    This is a classic case of how government regulation can stabilize and even enable a market. People and businesses who know that their checking accounts will work are more likely to have checking accounts.

    Deposit insurance, backed up by government regulation to ensure that banksters don't take advantage of it (as in the 1980s US savings and loan crisis) has been proven to work.

    Freedom isn't free. Patriots pay taxes.

    by Dogs are fuzzy on Sun Mar 17, 2013 at 04:25:10 PM PDT

    [ Parent ]

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