Libertarian Populist tradeoffsReader comment on: More Anti-Bank Populism on the Right Submitted by Conn Carroll (United States), Jul 2, 2014 09:33 "Mr. Carroll's proposal would risk causing a run on some of those large banks, possibly triggering their closure and with it another financial crisis." If the FDIC means testing was scheduled in advance, like a year or two, the large institutions should have plenty of time to spin their commercial banks off into smaller entities. "It might also disadvantage American banks in their global competition with other large foreign-owned banks." It definitely would. Just as killing ExIm would disadvantage some manufactures who compete with subsidized foreign rivals. Let Europe, or China, develope large fragile institutions. The U.S. will be more nimble, resilient, and competitive in the long run. "It would push a lot of money either to those foreign banks or to smaller U.S. banks and credit unions that might be not as well managed. Capitalism is about competition and failure. If those smaller banks don't manage the money well they will fail and be replaced by new ones. Note: Comments are moderated by the editor and are subject to editing. Other reader comments on this item
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