Why the FDIC exists
Most people have one of three perspectives on the FDIC U.N. sponsored gummint agency, that makes black helicopters for use by the Trilateral Commission Something to do with medicine approval? Something to do with regulating banks? If you ignore the Trilateral wingnuts, and the numb-nuts who mix the FDA and the FDIC up, you have the vast majority of people out there who realize that the FDIC has something to do with banks, but no real idea what. As it turns out, there is actually a perfectly valid reason for the existence of the FDIC - and it has to do with Banks, and Nash Equilibrium . To put it simply, a Nash Equilibrium is the equivalent of a self-reinforcing law, i.e., one that nobody has an incentive to break, despite the absence of a police force , because you end up worse off breaking it than if you don't. Or ask XKCD puts it "Huh? Whut?" " What on earth does the above have to do with the banks?" I'm glad you asked. Consider ...