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Moreover, economists' suggestions on how to improve deposit insurance (require banks to issue subordinated debt, charge variable rates for deposit insurance, or require private insurance of accounts) are rarely adopted and have proven unsuccessful in practice.
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Senator Barry Goldwater.
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It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.
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Economists' rationale for opposing strong banking regulators typically rests on public choice theory, which holds that the actors in political systems act to maximize their own self-interest.
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