If you’re too big to fail, you’re too big to exist. We should either let them fail (my preference, despite the pain) or bail them all out. But I also think that if we’re going to insist that there is a private entity that is too big to fail, it should be broken up until the pieces are not too big to fail.
Actually svb did fail. And flunk. The shareholders are wiped out. The employees are gone. Saving the depositors is an act of charity.
And if you save one bank, it restores confidence in the other banks against a bank run. Otherwise I was thinking of removing money in all banks combined.
The government outsourced this responsibility to the Federal Reserve at the same time that a federal income tax began.
There are 3 main ways to balance a government budget. Spend less, raise more funds through taxes, or make the scale of debt decrease through inflation.
