> Who do you think is footing the bill when the government has to step in?
Banks pay insurance premiums to the FDIC.
> The paper money doesn't exist.
Who cares? A college diploma that's not printed out is still a college diploma. I don't need to be able to physically hold it in my hands, and if a hundred thousand people all asked the Bursar's Office for a copy, they wouldn't be able to do so in a timely fashion either.
Who do you think is footing the bill when the government has to step in? The banks or the government? Wonderful regulation...