Posted on 02/23/2009 7:47:00 PM PST by richardb72
Why has the stock market fallen so much as politicians have talked about nationalizing the banks? If this was such a wonderful way of fixing credit markets, wouldn’t you think that stocks would go up?
The discussion might not be academic any longer with reports in today’s Wall Street Journal and elsewhere that the Obama administration is talking with Citibank about taking over as much as 40 percent of the company’s stock. Such a move would make the government not only Citi’s largest shareholder, by far, but it would effectively give the government complete control.
Politicians from Senate Banking Committee Chairman Christopher Dodd (D-Conn.) to Senator Lindsey Graham (R-S.C.) support nationalization. Democratic economists such as Joseph Stiglitz and Paul Krugman, and Alan Blinder also support it. Even former Federal Reserve Chairman Alan Greenspan supports a very limited nationalization. President Obama has already been on the record saying he opposed nationalization but now the state of negotiations with Citi has apparently already changed his mind.
Nationalization is being sold as necessary to help the banks but some banks were forced to take bailout funds over their objections last fall. Now some banks such as Bank of America are objecting to this new “help.” And who can blame them? Bank of America has continued to remain profitable despite being coaxed by the Federal Reserve to take over troubled financial institutions. . . .
(Excerpt) Read more at foxforum.blogs.foxnews.com ...
Lott ping
Not only will banks become political entities, the older retirees living on bank stocks will be penniless and forced to beg on the street, or perhaps the Messi-uh’s misses will tell them to “Eat cake” while the Master of the Plantation, will drop crumbs into their hands.
It makes a lot of sense if you change one premise...the one where the President of the U.S. wants to preserve the free market economy of the country. 0bama wants to destroy wealth and dismantle capitalism. What a better place to start than the financial system.
The mafia buys a stake in your company, who calls the shots?
Any nationalized bank will become the ‘new’ Fannie Mae and Freddie Mac.
Guaranteed.
It’s only temporary. (Yeah, right). As long as no one close to power speaks up, this will sail through just like the last few travesties.
If they had told the Clinton administration to go to hell and kept the rigid credit requirements that they used to operate under we wouldn't have a credit problem.
“I am from the government and I am sorry but you cannot take out that much of your money at one time. What are you going to use all of that for?”
“No I am sorry you are not authorized to close your bank account.”
“No, you cannot go to any other bank and open an account, either.”
“Can I provide any more help to you today?”
I have decided that, although, we live in interesting times...I don’t like it..a lot!!
Gee, you think?
Same goes with healthcare and everything else these guys are going to take...
They will be as temporary as toll roads.
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