---
title: "Loan To the extent that the government actually increases cost of..."
date: 2023-03-18
source: facebook
type: comment
context: "Archer T. Ships replied to his own comment."
fb_link: "https://www.facebook.com/dyi/l/?l=AYPdTLTjRSKOX7syC-oDAVSsjpLoTfdlzjP2KJHvYocpFPwZQLwzEF5oSbg2qkgwauialu14TngzzIQn1LB9QEzUvfrXwzRDEDdD-TncUGrTA1L1Z33gF1xxdzwr9VE495fP9kq9rJRDdCXWpHizUs3MIZanRdBblNdmHxpKXwKCvvIlePuVnvsn5M2Qk-3uL1TzizI_aCE&s=519"
---

# Loan To the extent that the government actually increases cost of...

*March 18, 2023 — Comment Archer T. Ships replied to his own comment.*

Loan To the extent that the government actually increases cost of insurance and/or sticks to the FDIC limits, then banks will be incentivized to be more cautious.  However, as illustrated with SVB and other politically connected "too big to fail" banks, the government has not allowed market discipline to operate, and instead shifted the costs of the bank's bad decisions to the taxpayers.