Now why is nationalization a better use of money? Well first, we are much too far down the road to discuss hands off policies (even though I advocated for this long ago because I knew things like TARP and Ben Bernanke’s nutty work were simply money being flushed down the toilet). First, with nationalization we own the banks flat out. We can then do the following:Amen brothers and sisters!! Can I get a big Amen?
-Shareholders get eliminated
-Bondholders get eliminated
-Management gets the boot
-Then and only then, do we separate out the good and bad assets. The good assets we try to sell them off to the market. The bad assets, we assess and slowly process a pricing model and get rid of them. Yet we know since the ownership is now ours that we’ll try to mitigate the loss for taxpayers. Right now with TARP and possibly the bad bank, banks are trying to off load as much of the crap at the highest cost to taxpayers while keeping the caviar assets all for themselves.
-This will get credit moving again because now instead of absurd capital injections, banks will now need to lend money because guess what, we freakin own them and we can decide whether we loan or not!
There is nothing more preposterous than a bad bank...
Friday, January 30, 2009
Nationalize the Banks Already!
We really need to Nationalize the bad banks before we dump anymore money into them. This site explains why. And it makes economics easy to understand.
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5 comments:
I hear ya and I have been distracted by your link for a while now - great link.
I think in Europe they "half Nationalized" the banks.
I think what they did was require that the govts be given a major portion of the bank stocks and that govt have a person sitting on the boards of the banks. I think I like that...the more moderate approach. I am not certain that the US govt should completely be the bank owners.
I like the idea of totally Nationalizing the goddamned oil companies because those are our resources and all of that profit should belong to us, but I like the idea of a portion of bank ownership by the govt, not total.
I agree Anjha, but at least until they are solvent again and reimburse the taxpayer. Get rid of the loopholes and corrupt managers. That's where I have no patience. And fuck the shareholders... that's what you get for trusting in the people you appointed and hob-knobbed with... fucktards! You get nothing... stoopids!
ya still got alot of 401K'ers as shareholders in those banks; people who worked hard but didn't have a whole lot of say where the funds were invested. I'd be ok with the investment class who were perhaps investing their extra change but not the 401K folk.
What I would like to see is the powers that be take that quack 55 yr old Wall Streeter up on his charge when he said that the bonuses should be looked at on a one by one basis. I'd add his statement to Claire Mc's demand to limit to $400,000 salaries and say, HEY, if you were paid more than $400,000 through TARP/taxpayer money then we're going to audit your bonus/pay and find out just what you got and why. The papertrail has got to be a gold mine.
Mainy, Good point, protect the ones who have less than 20 million in assests. The rest can just tough it out.
I really meant the super rich majority shareholders. Not the little folks who pensions are tied up in them.
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