@ryanlcooper @Alon in the modern era (since central banks and deposit guarantees), it has always been true that “private” banking is a bit of a swindle, because the bulk of the at-risk capital is provided in the end by the state. but the rationale has been that lending on “commercial terms” will yield superior outcomes than lending on terms that might become overtly political if the public nature of banking were fully acknowledged. 8/