Ilseop Lim

“And while the FDIC had emergency authority to wind down failing commercial banks in a swift and orderly fashion, no one had the authority to step in to avoid a chaotic bankruptcy of a major nonbank, to inject capital into a nonbank, or to guarantee its liabilities.”
― Ben S. Bernanke, First Responders: Inside the U.S. Strategy for Fighting the 2007-2009 Global Financial Crisis

“Modern developments have eased the intensity of the ancient struggle between creditors and debtors. Stock markets and limited liability have provided an alternative to bank borrowing for raising capital, and the penalties for default have been progressively relaxed. We no longer demand labour services of defaulting debtors, or send them to prison. Debt-bondage is a shadow of its old self.”
― Robert Skidelsky, Money and Government: A Challenge to Mainstream Economics

“Under the current US system, federal deposit insurance is capped at $250,000 per account.24 This coverage limit reflects a consumer protection philosophy; small retail account holders presumably lack the capacity to monitor bank solvency. But if we view deposit insurance through the lens of panic prevention instead of consumer protection, then the justification for coverage limits becomes far murkier. As we will see in future chapters, sophisticated institutional accounts are far more likely than small retail accounts to redeem en masse, precisely because they are paying closer attention. If panic prevention is a key goal, then coverage limits may very well undermine it.”
― Morgan Ricks, The Money Problem: Rethinking Financial Regulation

“Economists whose common sense had not been completely destroyed by their theories rejected the drastic cure of destroying the existing economy in order to rebuild it in the correct proportions.”
― Robert Skidelsky, Money and Government: A Challenge to Mainstream Economics