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 ...
Until the banks' derivatives and other toxic waste explode all over the Federal balance sheets.
I say burn em down.
You can't make capital cheap by refusing to pay for it. Grok already, you fools!
Greenspan’s brain long ago stopped functioning and occasionally issues a random brain fart. This was one of them, but it underscores his fundamental liberal political philosophy.
McCain, Graham and the Obamoron . . . . . . . . . says it all right there.
Yeah, just like other temporary thing the government got started. What was that called? Oh yeah, INCOME TAX.
The arsonists are still in charge of the fire department.
Greenspan is darn lucky Ayn Rand passed away years ago. If she could, she would hunt him down and kick his ass.
This is already happening. Look at the Fed’s reports on the various programs. They’re already taking losses in the 10’s of billions on “collateral” paper they’ve taken on some of these swap programs.
"I'd like to see mainstreet try to live for 6 months without financiers directing their activities. They be reduced to shooting each other over the last can of campbells."
5 posted on Saturday, October 04, 2008 3:38:33 PM by JasonC
"I'd like to see mainstreet try to live for 6 months without financiers directing their activities. They be reduced to shooting each other over the last can of campbells."
5 posted on Saturday, October 04, 2008 3:38:33 PM by JasonC
“Was I supposed to be surprised at this “news”!?”
A little. He was the one who tacitly ok’d exotic finance instruments.
What really Graham is saying is that rather than buying the “toxic” derivative instruments some big banks and others are holding, they should just take over the banks like usual in crises. That’s not new, “nationalization” is the new word for it, but not necessarily wrong.
What Obama and Geithner want to do is subsidize the banks and take the derivatives off their hands. Much, much worse, and of course what Goldman Sachs and other want the government to do.
Graham’s amorphous idea is better.
Greenspan should never be listened to anymore. He is a complete failure and understands nothing about people.
Looks like this is becoming the little train that could.
“Until the banks’ derivatives and other toxic waste explode all over the Federal balance sheets.”
This plan is for the shareholders to take the hit.
The Obama/Geithner plan is to have the taxpayers take the hit.
November was not an election. It was a coup.
I agree!!!
I agree!!! A pox on their houses!
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