I have no clue what you are talking about. I'm an anarcho-capitalist.
I was talking about how the FDIC creates bad incentives. I don't think I said anything about how new regulations would help, since the bit you quote is about how the difference between good regulations and bad regulations is in what kind of talent is misallocated.
Edit: Perhaps the part about being 'balanced by regulations' threw you off. What I meant is that the government writes rules to keep people from doing what the FDIC gives them an incentive to do. Those rules, of course, do not work.
> I was talking about how the FDIC creates bad incentives.
And I'm pointing out that the bad incentives affect depositor behavior. Thanks to FDIC, you have little incentive to find a trustworthy bank. Instead, you judge entirely on other criteria.
I was talking about how the FDIC creates bad incentives. I don't think I said anything about how new regulations would help, since the bit you quote is about how the difference between good regulations and bad regulations is in what kind of talent is misallocated.
Edit: Perhaps the part about being 'balanced by regulations' threw you off. What I meant is that the government writes rules to keep people from doing what the FDIC gives them an incentive to do. Those rules, of course, do not work.