On Jan 22, 2009, at 12:32 PM, Julio Huato wrote:
Shane Mage wrote:
[household and business] deposits are already insured by the
government
and any present "limit" on that insurance can be
instantly increased without limit as it was for the
S&Ls
There's something called context.
We're using the term "banks" and "deposits" in general. We're
referring not only to commercial banks and FDIC-insured deposits.
And, in case it is not clear, that some deposits are insured by a
public agency (ultimately the Treasury) doesn't mean that the collapse
of the banks would be *socially* costless.
And what, pray tell, would be the *social* cost of declaring bailout-
worthy banks bankrupt and continuing their operations with the
Treasury managing them as receiver-in-bankruptcy?
Shane Mage
This cosmos did none of gods or men make, but it
always was and is and shall be: an everlasting fire,
kindling in measures and going out in measures."
Herakleitos of Ephesos
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