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Some people, including orphans and widows, would still put all their money in the accounts and would then proceed to lose all their money. What then... And most of these people would do it because their "financial advisors" told them to.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Fri Feb 3rd, 2012 at 08:14:46 AM EST
[ Parent ]
Telling widows and orphans to gamble with their savings would be a violation of the advisor's fiduciary obligations to them, which should make him personally liable for their losses (and there is a case to be made that court awarded compensation should be paid out by the public purse and then collected by the public inkasso).

Oh, and get the financial advisor disbarred from financial advisoring in any official capacity ever again.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Feb 3rd, 2012 at 08:51:37 AM EST
[ Parent ]
I'll believe that when I see it.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Fri Feb 3rd, 2012 at 09:14:51 AM EST
[ Parent ]
Why are you asking me what then? I'm not suggesting that bank's normal liability management should be restructured so that the accounts that free up reserves are uninsured.

It seems like what is supposed to be a progressive version of the mentarist fantasy that central banks can and should regulate the money supply.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Feb 4th, 2012 at 03:59:38 PM EST
[ Parent ]

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