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The Case for Nationalization
If fears of nationalization drove this week's stock market decline, then shareholders should brace themselves, says the economist they call “Dr. Doom”: Nationalization is, at this point, the only solution. New York University economics professor Nouriel Roubini, “the nearest thing to a rock star among the economists,” emphasizes why nationalization is necessary in an interview with The Wall Street Journal. “The idea that government will fork out trillions of dollars to try to rescue financial institutions, and throw more money after bad dollars, is not appealing because then the fiscal cost is much larger. So rather than being seen as something Bolshevik, nationalization is seen as pragmatic. Paradoxically, the proposal is more market-friendly than the alternative of zombie banks." He says he expects nationalization six months from now. “Six months from now," he replies, "even firms that today look solvent are going to look insolvent. Most of the major banks -- almost all of them -- are going to look insolvent. In which case, if you take them all over all at once, you cause less damage than if you would if you took over a couple now, and created so much confusion and panic and nervousness.”
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The Scariest Words You'll Ever Hear:"I'm From The Government And I'm Here To Help"--People just don't get it that the bigger government grows and the more they "help out" the more control they get over our lives.
Adding to the government's involvement in this mess is the double-speak which so proliferates Washington's standard of communicating. Listening to Obama brow beating the mayors of cities, telling them that their feet will be held to the fire with regard to their spending of any stimulus money they get from the feds.
How about looking to your own party and holding them to the same standard.
Polosi and 7 other Dems with spouses in tow, fly off to Italy on what is thinly disguised as a diplomatic trip (of course at the taxpayers expense), where Polosi is given, in a teary-eyed ceremony, the birth certificates of her grandparents. And yet they have the arrogance to berate (with good reason) auto execs for using their private jets and lecture mayors of cities throughout this country for being more fiscally responsible. Someone enlighten me as to where is the this "new era of responsibility"?
I agree with the article except I don't understand why we don't do it "NOW" saving more tax payer dollars from going down the drain... The second & I think a "MORE" important area is what to do with them when it comes time to make them private again. Now it seems to me these problems we now find ourselves in have many causes "BUT" among them are the that the banks are "TOO BIG TO FAIL" & that since we have so few banks left competition has decreased to a point where a few men sitting around a small table rule the world of money in this country as well as the world. SOOOO when it is time to make them private again a few small regulations should be made to help the above from never happening again. First "NO" bank can own another bank in another State. Second "NO" bank can have more then "X" dollars insured by the FDIC helping it insure that "NO" bank will ever be "TO BIG TOO FAIL" again... Thirdly bringing back State, City, Community banking will not only move money/assets all across the country it will give more people a chance to participate in the American dream of wealth through business as well as make money available on a "VERY" local level & bring back the concept of local people helping local people, something that today is totally gone form the banking market place.
Thank you.
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