After Silicon Valley Bank, scrap the bank deposit insurance limit

I don't think it should be scrapped, but it should be modified.

The current system was put in place to encourage a decentralization of the banking system. You are forced to spread your funds across multiple banks.

The issue is that this is a pain to manage. Yes, there are services that can manage it, but that just increases the costs and friction associated with it.

So instead of scrapping it, these services should be made available to everyone, by default, and shouldn't cost anything.

I'm 50/50 on this. Obviously we can't risk the health of our economy on the next bank run. On the other hand, even a big business keeping that much money in a single bank account is ridiculous - there should be some sort of incentive against hoarding that much money.

I say scrap the limit - but don't make everyone pay the FDIC insurance. Actually make the big accounts do the lion's share of insurance payments to the FDIC.

> Specifically, Congress should say that when the deposit insurance fund is fully funded, banks’ deposit insurance fees go to the Treasury Department as fiscal revenue — rather than being waived as they are under current law.

Waived? How does that make any sense whatsoever?

This would only benefit the wealthy. Again. Just like making SVB depositors whole, or 2008 bank bailouts. You want torches and pitchforks, this is a good step in that direction.

Better raise inflation target to 4% while we're at it...