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collective self-insurance.

In an era where many western politicians seem to have an almost illogical fetish with P3s, I thought this quote regarding the banking industry was quite interesting.

“Private banks collectively cannot self-insure against a generalised run on the banks. Once the state underwrites the deposits or makes alternative funding available as lender of last resort, deposit-based banking is a license to print money. That suggests that either deposit-banking licenses should be periodically auctioned off competitively or that deposit-taking banks should be in public ownership to ensure that the taxpayer gets the rents as well as the risks. The end of American capitalism (as we knew it) | open Democracy News Analysis

(h/t Michael Janz Online)

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