Rolling Back the Twentieth Century Watch: Abolish the FDIC

Rortybomb, like most of blue America, originated in red America and maintains ties there that give him an occasional finger on the pulse. He reports on how many fathoms the fever swamp (Konczal, Mike, “Things I’m Reading, 12/22,” Rortybomb, 22 December 2009):

Visiting home for the holidays, it’s amazing to me how certain groups of friends, who I mostly considered in the generic Republicans/conservatives camp, have been wading deeper into the Ron Paul territory. “Abolish the Fed” is one thing, but what surprised me the most was when I was at a Christmas party several people mentioned, fairly out of nowhere, how bad FDIC is for the economy. I think they thought that regular depositors could have done a better job vetting financial institutions than major sophisticated shareholders. When I tried to point out how if there wasn’t FDIC and millions of savings accounts were getting wiped out in ordinary bank runs we’d almost certainly have a wave of turn-of-the-last-century style violence that is hard for us to even imagine now — think bomb throwing anarchist violence — they seemed to be ok with that.