Voters are naive. They want to believe bureaucrats, who they say they do not trust, whenever the bureaucrats say soothing things. They do not want to take responsibility for their investment decisions. They want government guarantees. They want bailouts for themselves, but these bailouts are supposed to be paid for by other voters.
Everyone wants to believe that the fractional reserve banking system is not at risk, and whatever risks there are — very, very low — should be borne by other voters.
So, the crisis will continue. So will the reassurances from officials that it is all over. “There is nothing to see here. Move along.”
via “The Banking Crisis Is Over,” Say European Bureaucrats. Ho, Ho, Ho..