It's not just scale, if I understand things correctly. One problem is that a lot of state and city treasurers think that it's smart to take some of their tax revenue and hand it over to banks for investment, making them as vulnerable as normal citizens.
In theory, this is a good idea because that money gets loaned out to startups and homebuyers. In practice, well... crises and stuff. This is largely what I've gathered from my brief foray into understanding why a state bank is a good idea.
In theory, this is a good idea because that money gets loaned out to startups and homebuyers. In practice, well... crises and stuff. This is largely what I've gathered from my brief foray into understanding why a state bank is a good idea.