Input Junkie

That already happened on a national scale a century ago, with the creation of the Federal Reserve. Instead of individual banks having runs and collapsing, causing local harm to their less alert customers, we have all the banks tied together to a financial monoculture that succeeds or fails as a whole. Jane Jacobs warned about the dangers of such monocultures in Cities and the Wealth of Nations, though her imagination didn't go so far as to having unregulated competing banks, but only to having each city have a separate financial monoculture rather than sharing in One Big Monoculture. Hayek's more radical proposals in Denationalisation of Money might be more effective if they ever got serious attention from politicians.