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Comment by axlee | Hacker News Reader

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axlee·

> A bank that can't pay back 100% of deposits has failed.

Well, not at the same time. No bank can do that.

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The fed seems to have never had a problem when all their customers [i.e. banks/hedgies/wallstreet] come asking.

It's easier when you can print money :)

I believe the implication is: why aren't we using the fed for our banking, this kind of bank run would be impossible. The fed provides guarantees to banks but not to retail and that's a policy decision we could change, if we wanted to.

We're making some progress in that direction. The FedNow program will provide retail money transfer services [0]. This should make it much more practical to do direct stimulus efforts like we saw during COVID.

[0] https://www.frbservices.org/financial-services/fednow/about....

> The fed provides guarantees to banks but not to retail and that's a policy decision we could change, if we wanted to.

Who is "we?" The US is not a democracy. Nothing could stop US elites from overturning the Bretton Woods system, passing NAFTA, and bailing out the banks in the mortgage crisis, so what makes you think "we" could change this policy decision?

Karl Marx showed us how capitalism works 150 years ago. The ruling class rules and the working class works. If you don't like it, you need to move beyond capitalism.

>>Who is "we?"

Guns

Is that a joke or do you lack even a passing clue about the weapon power of the US military?

Try selling socialism to Americans...that's why.

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