Bank nationalization may not be the policy preference of Democrats and Republicans alike, but it may well be the last resort of both parties, as more and more analysts say nationalization is no longer a matter of “if” but “when.” . . .
Phrases like “temporary surgical stablilization” illustrate how the current debate over nationalization may be as much about semantics as it is about political ideology. . . .
The market capitalizations of Citigroup and Bank of America, two of the big financial firms struggling the most under the weight of bad assets, are now well below the amount of government assistance. . . .
The Obama administration’s recent announcement that it would start using a “stress test” for banks with assets over $100 billion as part of the financial aid process is seen as a prelude to some nationalization process. . . .
So we gave these two banks more assistance than their net market worth! All the weak banks need to be taken over and the shareholders wiped out. That way, in the future, shareholders will exercise vigilance in electing boards that will oversee these companies in a responsible manner.
If we don’t do this kind of thing with banks, autocompanies, home buyers etc., then history will just repeat itself. If a home buyer was duped by shady business practices, then the businesses involved should be penalized but otherwise, bailing the home buyers out is just like bailing the banks out and we’ll end up in the same place soon enough.
If any good comes out of this, it will be an international currency.