• WoodScientist@sh.itjust.works
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    4 days ago

    Wait til these idiots try to abolish the FDIC.

    People know that banks engage in all sorts of complex, stupid, and risky financial derivatives engineering. The only reason anyone has confidence in the banks is due to FDIC insurance. If they fuck with that, it will trigger a run on every bank in the country. I imagine Congress would step in to stabilize things, but it could be quite hairy for awhile.

    Honestly, right now, for those who are able, keeping a decent chunk of cash in your mattress is no longer the game of cranks and weirdos.

    • BradleyUffner@lemmy.world
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      4 days ago

      Most people have no idea what FDIC is. They have confidence in banks because “that’s where you put money”. They have no concept of what their personal bank failing would mean.

      If Musk said he was shutting down the FDIC, the vast majority of people wouldn’t care until after their bank failed. By then it would be too late.

    • CharlesDarwin@lemmy.world
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      4 days ago

      I imagine Congress would step in to destabilize things, but it could be quite hairy for awhile.

      I assume you meant stabilize, but given that Congress is controlled by Republican freaks, I’m unsure.