Does additional insurance encourage to take ever-larger risk

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Question: Is the U.S. banking system designed to fail?

If not, why has it been a source of so much instability over the centuries?

Why have governments all over the world needed to provide ever-increasing quantities of insurance and offsetting risk regulation?

Does this additional insurance encourage to take ever-larger risks?

Will the regulators, including the Federal Reserve System, be able to keep up with the new risky practices, or will the bankers outweigh them in motivation, resources and influence?

Reference no: EM132126052

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