Stress testing "nationalization"

Stress testing "nationalization"

news.yahoo.com

A touchy word has entered the public debate about the future of America’s economy. It’s a word that would shock the nation in normal times, but as even Republicans begin to whisper it, temporary “nationalization” of troubled banks is increasingly seen as our last best hope for fixing our financial system.

Simply put: Nationalizing ailing banks means the government would tell bank execs to take a hike, and then oversee taxpayer dollars as they course through the banking sector's veins.

(visit the link for the full news article)

While I can see the potential for this to be a good thing, no more six figure bonuses perhaps, I'm not too sure about this one. I'm not particularly fond of the government having control of everything and this could be the first step. Start with the banks and then move on to other businesses "for the good of the economy" and next thing you know they control literally everything.

I'd like to hear everyone else's opinion on nationalizing the banks. Are you for it? Against it? Why?

news.yahoo.com
(visit the link for the full news article)

They don't need to nationalize the banks.
What they need to do is remove the corrupt criminal individuals from positions of power at the SEC and other regulatory agencies.
Not to mention the criminals in power at the FDA and Federal Reserve.
Instead of nationalizing them, why not enforce the laws they are supposed to abide by?
Why do banks, get a different set of laws to us?
They have become there own entity that lives outside the law.

Oh you can BET this will happen, they will look through the books and the banks that own the MOST mortgages, good or bad will end up nationalized.

Also the ones that have the most loans out to the home builders

That way the Housing assistance plan can actually be made to work

And no one will realize that we will then have socialized housing

Originally posted by Jenna

Stress testing "nationalization"

news.yahoo.com

A touchy word has entered the public debate about the future of America’s economy. It’s a word that would shock the nation in normal times, but as even Republicans begin to whisper it, temporary “nationalization” of troubled banks is increasingly seen as our last best hope for fixing our financial system.

Simply put: Nationalizing ailing banks means the government would tell bank execs to take a hike, and then oversee taxpayer dollars as they course through the banking sector's veins.

(visit the link for the full news article)


"Owners of capital will stimulate the working class to buy more and more expensive goods...debt will lead to bankruptcy of banks which will have to be nationalized...which will eventually lead to communism." Karl Marx, 1867.

If ANYONE thinks that it is a good idea that the government take control of any business or any bank do a search for "Sallie Mae complaints." Sallie Mae was an entity created by the governemt and controled by the government until it was privatised. Even though it is now fully privatised it still...STILL has many of the protections that a federal controlled program has as compared to a regualr bank or lender.

My mother has been fighting with Sallie Mae for a long time now, she is pushing 70 years old and 30 years ago recieved a loan for $10,000 which within a few years managed to find its way to $25,000 with no logical answer for it.

People who fight with Sallie Mae dont have rights on their side nor do they have any laws that work in their favor against Sallie Mae. Loans from Sallie Mae can never default, even if you declare bankruptcy. They have been known to harrass people at home, harrass people at work, even harrass people's bosses to the point of getting that person fired. They will steal, yes steal, money out of your account if they discover your bank account number and can gouge your paycheck without prior notice. They have even threaten to take my mothers Social Secruity that she realies on heavily.


Government involvement is BAD.

Extremely Bad.

Dont let anyone, ANYONE, convince you otherwise. Once a corporation gets nationalised, you lose all your rights to defend yourself against any debt from that corporation, even if they add erronious debt that is not suppose to be there. This goes for all corporations that get nationalised. When a corporation is nationalised you owe the government money and you all know what happens when you dont or cant pay the government its money. Nationalization will be the beginning of the return of Debtors Prisons. The friendly police with assault rifles knock on your door and ask you politely to be quiet and demand your Visa/Mastercard minimum payment as they taze you. To serve and protect, the government.

Say NO to nationalisation!

[edit on 18-2-2009 by A NeWorlDisorder]

It would eliminate that which is a block on redistribution of wealth. Govt would know how much they need to take from Fred and Ethel and George to give to Sarah. Even out the money supply for folks, don't ya know.

reply to post by Jenna


I'm completely against it. Personally I don't really care if the execs are getting paid 7 figure salaries and 8 figure bonuses, Banks make a lot of money and it is hard work to run a giant corporation. Another reason why I don't particularly care is because it is the governments fault for these entities to have access to our tax money. So you shouldn't get mad at the banks for mishandling their money you should get mad at the government for mishandling our money.

But your wrong on one thing. If they nationalize the banks they do own EVERYTHING.

Banks give out the loans to businesses. Bank Nationalization means they own it all. They hold the power of who gets what loan and who doesn't. They will also have access to all of our financial information.

Completely against it. Not to mention when the government does something on this grand of scale, it is never temporary.

This is the most blatant and biggest power grab in the history of the country. If this happens you can say good buy to your local banks. Good ole big brother will buy them up to make sure that they can't do anything like the big evil greedy bankers did.

reply to post by Hastobemoretolife


That's what has me concerned as well. I don't see them voluntarily handing the banks back over once they control them. The government doesn't like to relinquish control of anything and having complete control over the financial sector would be their dream come true.

And you're right, if they control the banks they control the loans which would give them at least partial control of everything else.

I did a bit of digging and found an interview Obama gave to ABC News on February 10th about the stimulus package, the economy, and found this bit tucked in the middle.

ABC News: Obama: No 'Easy Out' for Wall Street
TERRY MORAN: There are a lot of economists who look at these banks and they say all that garbage that's in them renders them essentially insolvent. Why not just nationalize the banks?

PRESIDENT OBAMA:Well, you know, it's interesting. There are two countries who have gone through some big financial crises over the last decade or two. One was Japan, which never really acknowledged the scale and magnitude of the problems in their banking system and that resulted in what's called "The Lost Decade." They kept on trying to paper over the problems. The markets sort of stayed up because the Japanese government kept on pumping money in. But, eventually, nothing happened and they didn't see any growth whatsoever.

Sweden, on the other hand, had a problem like this. They took over the banks, nationalized them, got rid of the bad assets, resold the banks and, a couple years later, they were going again. So you'd think looking at it, Sweden looks like a good model. Here's the problem; Sweden had like five banks. [LAUGHS] We've got thousands of banks. You know, the scale of the U.S. economy and the capital markets are so vast and the problems in terms of managing and overseeing anything of that scale, I think, would -- our assessment was that it wouldn't make sense. And we also have different traditions in this country.

There is a video and full transcript at the above link.