So will every struggling bank get a bailout from now on? How long is this sustainable?
This is actually pretty terrifying when you think about it...
Its indicative of just how much a shell game fractional reserve banking truly is.
> However, the common use of the phrase occurs where government resources are used to support a failing company typically to prevent a greater problem or financial contagion to other parts of the economy.
This is not what's happening in this case.
It is, technically, true. But it’s not very helpful in understanding why these things happen and which are good vs bad.
Not very helpful to who? It is very helpful to the average Joe in explaining why they are getting screwed over.
The statement describes it as a deposit, not a loan. Where are you getting this information?