Absolutely money is fungible and I largely agree. I just don’t think it’s scandalous but to the contrary proof that the system works.
To criticize the recent events is like saying that any insurance required by any business once paid out is tax payer funded.
For example…Airlines are required to have insurance if and when accidents take place. This is industry wide and the requirements are specific and mandated. The costs of this insurance is transferred via higher ticket prices to the consumer who is also likely a taxpayer. When a plane crashes and the insurance pays the victims (also taxpayers) no one calls it a government bailout.
The FDIC exists to provide security and trust amongst all depositors for amounts up to $250k. They indirectly pay for this protection and hope to never need it. Like the aforementioned airline example it is there for the protection of all but when drawn upon those funds are coming from people who benefited from the security of its existence in the first place not the government.
The “bail out” is industry financed in money that has been collected and set aside to ensure the industry can exist. Otherwise without this safety net only the largest of banks could exist.
Once again I agree! Taxpayers and consumers are however often one and the same. In 2008 the banking and auto industries received direct government bailouts. In these recent instances depositors benefited from having paid into an insurance program that funds itself. Apples and oranges.