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And that’s before you get to the fact that the Eurozone has created the worst of all possible worlds with the so-called Bank Recovery and Resolution Directive which went into effect in January 2016. It fails to provide for one of the key requirements of a sound banking regime, which is backstopping deposits (that is left to nation-states, many of which have deposit guarantee schemes which are not adequately funded. A deposit backstop should be provided by the regulatory authority, particularly since it is the Eurozone, and not Eurozone members, that controls currency issuance). While the US doesn’t have a credible regime for resolving too big to fail banks either, unlike the BBRD, it didn’t spend years creating a post-crisis set of regulations that actually increases the odds of bank runs. Yves Smith from http://www.nakedcapitalism.com/2017/05/bleak-prognosis-italys-financial-regulator-threatens-eu-return-national-currency.htmlSo the banks get to create deposits/liabilities ("Bank loans create deposits") that the rest of us, including the less so-called creditworthy, the poorer, have to insure! Sound fair? Not to me.And when I tried to explain that individual citizen, business, etc. accounts at the central bank would be risk-free I'm told the idea is "balmy" because the central bank always has been and always shall be a bank for BANKS ONLY in the private sector! An argument from tradition from a so-called Progressive!
Oh and I got banned too; apparently because her position could not be defended without resorting to cheating..
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