The real problem is that once you loot depositors, no one will deposit, and the banking system will collapse.
The abject stupidity of lefties never ends. They started giving away money to people who had kids out of wedlock, and are shocked when more and more kids are born out of wedlock! And as the family has disintegrated, our culture has disintegrated, especially in the inner cities. If you subsidize illegitimacy, you get more of it. Of course!
Similarly, the blithering idiot Krugman does not see that if you loot people's bank accounts, people will pull their money out of such accounts. This will wreck the banks, which will wreck the economy. To put it simply: dumb; dumber; dumbest; LEFTIST.