Scott:

I think my last long reply did not hit the nail on the head:

- We do want our FED to backstop depositors, they did not reap reward from risky behavior, and the contagion that regularly occurs when accounts are not backstopped is bad for everyone, especially the working class.

- But we should not bail out the bond and equity holders... this creates a moral hazard, and will be exploited.

- in this case (but not last time) the fed seems to have done the right thing (just protected the depositors)

- your idea of a digital account with the fed is interesting. But would it pay interest? If not, folks would rather (and will) invest elsewhere.