MISDIAGNOSED: Um, this is nonsense:
“US regulators have extracted some valuable lessons from the country’s first banking crisis in more than a decade. But one stands out: If banks were stronger in the first place, the whole unfortunate episode might’ve been avoided.” [Emphasis added.]
Huh? The shuttered banks weren’t financially strong enough? Please. A bank might be absolutely swimming in capital, but if for whatever reason its depositors get so panicked about the safety of their money that they end up pulling it out all at once—which is what a bank run is, after all—the bank is likely going to be toast. Did none of these people ever watch It’s a Wonderful Life? Anyway, it’s time to revise deposit insurance to include the checking accounts of all businesses.