chomwittAndy Levin (Former Fed economist ) proposes to separate loans and investment banking from transactions . So daily transaction would be controlled by a central goverment .
I've read it first in a #counterpunch article.https://www.counterpunch.org/2023/03/16/the-answer-to-the-silicon-valley-bank-bailout-federal-reserve-banking/
I dont understand though how that helps mitigate crises like that currently unfolding with #svb (Silicon Valley Bank). It looks like injecting a crypto layer in current #fin_arch .
What do you think about that ?
#banking #digitaldollar #crypto #ecomomy
The Answer to the Silicon Valley Bank Bailout: Federal Reserve Banking
Word from the grapevine is that the risk of contagion may cause the Fed or the FDIC to engineer some sort of bailout of uninsured deposits, where they get paid back in full, instead of being forced to accept a partial loss on deposits over $250k. That would be unfortunate, since the people who run these companies that have large deposits are supposed to be brilliant whizzes, who should be able to understand things like FDIC deposit insurance limits.