Is the government realising how scary and demoralising this is for depositors? Money will flow out of the banking system. I don't know where it can go, though.
It's one of those dilemmas. Cars are bad and we want more public transport. But when the automotive industry tanks, we worry.
Similarly, government bailouts of corporate loans are bad and we don't want them. But when corporates sink and take retail depositor money and working class jobs, that makes us worry too.
What we do want is for the government to do a much better job of oversight and regulation. But every government has the previous government to blame for lack of governance. Long live पंच वर्षीय democracy.
It's one of those dilemmas. Cars are bad and we want more public transport. But when the automotive industry tanks, we worry.
Similarly, government bailouts of corporate loans are bad and we don't want them. But when corporates sink and take retail depositor money and working class jobs, that makes us worry too.
What we do want is for the government to do a much better job of oversight and regulation. But every government has the previous government to blame for lack of governance. Long live पंच वर्षीय democracy.