Comment: Is this really a bad thing though?

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Is this really a bad thing though?

What I mean is, sure it will be tough on the smaller banks and us for a while, but with the FDIC not insuring those accounts, wouldn't the smaller banks entice people to keep their funds deposited by raising interest rates? Bottom line is, banking is a risk, FDIC negates that risk with deposit insurance, lower risk means lower interest rates, which hurts the majority of Americans. So although this will hurt initially, and I'm sure some smaller banks will fail, will it not be better in the long run? I deposit my funds in a small local bank so I'm a little worried too, but if they raise my interest rate...and don't fail...I'm all for it. I will probably move more to silver though just to be on the safER side.

If ignorance is bliss, Washington DC must be heaven.