Part 8/11:
Interestingly, government steps seem to be temporary shields; although depositors may not immediately lose access to their funds, unresolved failures could prompt federal bailouts. The uncertainty surrounding whether the government will continually intervene is fueling instability.
Calls for Systemic Reform and Government Intervention
To restore confidence, some experts, including Bill Ackman, argue for the government to implement a broader, temporary system-wide deposit guarantee—beyond the current $250,000 limit—until a long-term solution can be devised. He emphasizes that such a move could help stabilize the system over the short term, especially since bank failures threaten to spiral out of control if left unaddressed.