Thursday, 15 December 2011

There is no reason to treat banks differently from other businesses

Many business might be considered to be a utility (such as supermarkets or appliance manufacturers) but that is not a reason to give them extra protections... Member banks should not have been given deposit insurance by the central bank. Such a practice should be against the constitution. According to the constitution the central bank should not be allowed to give deposit insurance to the member banks.

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