Do you know the difference between a bail-in of depositor's funds and a bail-in of subordinate debt? Can you tell me which Western nations are moving to a depositor bail-in model?
Of course there is no reason why depositors shouldn't lose some or all of their deposits if a bank can't pay its debts. That's what deposits are, debts. If you lend money to someone and they cannot pay you back that should be a problem for them and their creditors to sort out. There is no reason for taxpayers or fiat holders to bail anyone out as seems to happen frequently (the state either taxes the uninvolved or prints more money to cover the shortfall). I have yet to hear of any Western country proposing to change the bank creditor hierarchy to disadvantage depositors.
