(click on image to enlarge)
The FDIC has taken over quite a few banks since the financial crisis began. But, as can be seen in the above graph, something quite different happened in the 80's.
Not only did farm milk price drop, for very political reasons, but also, dairy farmers likely lost their local banker.
Banking used to be a matter of gaining deposits from local people and then lending those deposits, often based upon personal knowledge of the loan applicant. Banks were part of the local community support system.
Markets may efficiently determine efficient allocation of resources but, markets are very poor at making certain needs, especially community needs, are filled.
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