Nationalizing the Banks Seems Inevitable: How Bad Does It Have to Get First?

[keep_it_real]

Nationalization is the only option that would permit us to solve the problem of toxic assets in an orderly fashion and finally allow lending to resume. Of course, the economy would still stink, but the death spiral we are in would end.

In a way, nationalization is the approach that most closely adheres to "free market" principles, which dictate that poorly managed firms should go under, freeing up their human and other capital to be absorbed by well-managed businesses.

http://www.alternet.org/workplace/127091/nationalizing_the_banks_seems_inevitable%3A_how_bad_does_it_have_to_get_first__/?page=2

[Veritas_et_Aequitas]

1. Well, I think of it this way.

Our financial system is like a car tipping over a ledge. The front wheels and engine block are already over the edge, and we're desperately trying to shift CDs, tissues boxes, and bags into the back seat to try to balance the weight.

Once a butterfly lands on the hood and sends us over the edge, then we'll nationalize.

[KansDem]

2. I suppose once the banks are nationalized, there would be government oversight...

...and the bankers would have less opportunity, if any, to continue ripping off the taxpayers. I mean, no more anonymous, "no-strings-attached," $100-billion bailouts...

Isn't there already $2 trillion gone and we taxpayers, who "funded" the bailouts, don't have "permission" to know to whom and how the money was spent?

[Greyhound]

4. More like 3, but yes. n/t

[BlooInBloo]

3. Here's one picture of how bad it is *now*...

http://www.ritholtz.com/blog/2009/02/can-wall-street-do-basic-math/

[jwirr]

5. I am curious - I bank at USBank - what group here do they belong to? nt

[BlooInBloo]

6. I haven't the slightest. I don't imagine they did every single bank in the country.

EDIT: But I would imagine that the date from which the pretty pictures were made is publicly available, and you can make one for your bank yourself.

[jwirr]

7. I just assumed that all banks were somehow connected to these big ones. nt