Posted on 02/17/2009 5:48:34 PM PST by rabscuttle385
BY KRISHNA GUHA & EDWARD LUCE
Washington. The US government may have to nationalise some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman has told the Financial Times.
In an interview with the FT Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.
”It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”
Mr Greenspan’s comments capped a frenetic day in which policymakers across the political spectrum appeared to be moving towards accepting some form of bank nationalisation.
“We should be focusing on what works,” Lindsey Graham, a Republican senator from South Carolina, told the FT. “We cannot keep pouring good money after bad.” He added, “If nationalisation is what works, then we should do it.
(Excerpt) Read more at ft.com ...
Honestly, he had a point. The failures of banks are hurting the ‘main street’ economy. We need healthy finance system for a healthy economy.
Now, as for socialism being a ‘fix’ for that, it’s an amputation to fix a bad stomach virus. Lets not give up the dynamic economy in order to salvage some institutions that made mistakes.
“if this were China greenspams family would be being billed for his untimely demise.”
China used to execute managers who failed.
That or send them to labor camps.
The banks are so crooked and broken I believe this is the only way out of the mess. It worked for the S&L industry. “
False. We never nationalized a single S&L. We simple bought assets of insolvent banks and resold them - BIG difference.
The US Govt has not operated private banks before.
The is new territory.
Honestly, he had a point. The failures of banks are hurting the ‘main street’ economy. We need healthy finance system for a healthy economy.
Now, as for socialism being a ‘fix’ for that, it’s an amputation to fix a bad stomach virus. Lets not give up the dynamic economy in order to salvage some institutions that made mistakes.
In lieu of calling stealing, stealing, my militray dad (who fought in both WW-I and WW-II) called it “liberation.”
Stealing, liberation, nationalization ... are basically the same thing.
Deadbeats pay. A deadbeat people cannot succeed in making imaginary hated fatcats pay instead through sheer chutzpa. If they won't pay as past borrowers, they will pay as taxpayers today and as users of capital, directly or indirectly, tomorrow, but they *will* pay. Every red cent, and the defaulted ones 3-5 times over.
The attempt to avoid doing so through the exercise of political power and focused hatred directed at rich capitalists, will backfire as it always backfires, and leave the populist mascots unemployed and impoverished some more. But they will *still* pay.
It works just dandy for those in charge. They couldn't care less how the rest of us suffer for their mistakes.
What do they pay for those securities with?
Bloody hell.
We have a process for Bank Nationalization: The FDIC.
If a bank needs closing, close it. I helped close Savings and Loans in the ‘80s. It isn’t the end of the world.
The government takes the bad liabilities, fires the management, returns insured deposits to depositors, pauperizes shareholders who allowed management to take too many risks on their behalf, and re-opens the bank by combining the healthy remainder with a healthy bank.
Voila!!
Why can’t we just let the regular process work to clean out the Zombie Banks? Quickly?
Can’t argue with that.
I think you’ve done enough Alan.
Greenspan
A truly appropo, albeit decrepit example of why we are in the current crisis.
“The arsonists are still in charge of the fire department.”
—
Well said.
Add to that the lumber yard.
Thanks. Ping.
If our major banks are nationalized it will be the end of capitalism. No one will want to invest in any U.S. stocks. Capital will leave the United States in search of non-socialist markets.
Government interference in the mortgage business led us to our current mess. More government management is the exact opposite of what is needed to revive the economy.
DUM DE DUM DUM
DUM DE DUM DUM
DUM DE DUM DUM DUM!
Oh Wheee.
The super Oligarchic stooge speaks in concert with the rest of the Oligarchic stooges. What a surprise.
/s
They change the computer entry showing the balance held at the Fed.
Is there any limit to the value of the securities they can buy, and, if so, what is it?
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