Ian G wrote:
Unfortunately, there is no good basis
in economics for the case that the user
cannot be trusted to choose a good bank.

By your second "good", I assume you mean "more secure".

I'm not arguing that, given 5 otherwise identical banks with different levels of trustworthiness, one could teach the user to pick the most trustworthy. I'm arguing that, until lots and lots more people are losing their money, it won't become a significant factor in the choice - because banks are not "otherwise identical".

But if you asked the head of the Federal
Reserve the same question, he would say

Absolutely Not!

But he hasn't carefully chosen for you a list of banks which are the only ones you are (practically) allowed to do business with.


Gerv
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