Bailout fails; nationalization is even worse
From the NYTimes (By MARK LANDLER and ERIC DASH):
The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left.
by 6:30, all nine chief executives had signed — setting in motion the largest government intervention in the American banking system since the Depression and retreating from the rescue plan Mr. Paulson had fought so hard to get through Congress only two weeks earlier.
So the bailout bombed. And now Print'em Paulson wants to nationalize the banking sector.
Anyone else hear echoes of a fellow native of the western hemisphere?
Aug 1, 2008 - President Hugo Chavez on Thursday ordered the nationalization of the Banco de Venezuela "to put it at the service of Venezuela" after denying approval for its sale.
Maybe we could nationalize our oil fields while we're at it?
Or maybe we could take over the telecom or cement industries?
Heck... let's nationalize Everybody's and Stop n Shop!
But on a serious note... where exactly does this slippery slope end? And I point out that neither McCain nor Obama did anything to stop the Bernanke / Paulson fearmongering that they spread like wildfire in September.
Bush's bailout is bad news. And neither McCain nor Obama appear to understand monetary policy... so despite some great rhetoric, don't expect either of the candidates from the two major parties to really effect "fundamental change." Whether Obama or McCain win, it's still gonna be more of the same failed Bush policies fiat monetary policies.
Tim White
3 comments:
"let's nationalize Everybody's and Stop n Shop"
if only we acted in time to save IGA!
I've got my pocket constitution right here and I can't find anywhere in it a section that grants the executive branch power to nationalize banks.
This actually sounds similar to the famous book Atlas Shrugged. In that book you'll remember that the seizures and appropriations of private resources was the ultimate cause of the economic collapse.
Ayn Rand, a prophet?
Bailout fails only addresses a part of what is going on. For poor old Mr. and Mrs. America and their offspring the bailout is clearly failing. For those able to collect a pile of government money it’s a windfall.
I’m waiting for the most important government action needed to help get things back to more normal times. At some point there needs to be a round-up, prosecution, and punishment of the bad actors in the U. S. financial services and banking industry, as well as anyone in government who hasn’t met their legal and moral responsibilities to keep the nation safe from sketchy financial shenanigans.
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