Bank Nationalization Casts A Shadow [CNBC]

[vs_trumpet]

cnbc.com/id/29300504

Bank nationalization may not be the policy preference of Democrats and Republicans alike, but it may well be the last resort of both parties, as more and more analysts say nationalization is no longer a matter of “if” but “when.” . . .

Phrases like “temporary surgical stablilization” illustrate how the current debate over nationalization may be as much about semantics as it is about political ideology. . . .

The market capitalizations of Citigroup and Bank of America, two of the big financial firms struggling the most under the weight of bad assets, are now well below the amount of government assistance. . . .

The Obama administration’s recent announcement that it would start using a “stress test” for banks with assets over $100 billion as part of the financial aid process is seen as a prelude to some nationalization process. . . .

So we gave these two banks more assistance than their net market worth! All the weak banks need to be taken over and the shareholders wiped out. That way, in the future, shareholders will exercise vigilance in electing boards that will oversee these companies in a responsible manner.

If we don’t do this kind of thing with banks, autocompanies, home buyers etc., then history will just repeat itself. If a home buyer was duped by shady business practices, then the businesses involved should be penalized but otherwise, bailing the home buyers out is just like bailing the banks out and we’ll end up in the same place soon enough.

If any good comes out of this, it will be an international currency.

 

[Ridgerunner]

cnbc.com/id/29300504

Bank nationalization may not be the policy preference of Democrats and Republicans alike, but it may well be the last resort of both parties, as more and more analysts say nationalization is no longer a matter of “if” but “when.” . . .

Phrases like “temporary surgical stablilization” illustrate how the current debate over nationalization may be as much about semantics as it is about political ideology. . . .

The market capitalizations of Citigroup and Bank of America, two of the big financial firms struggling the most under the weight of bad assets, are now well below the amount of government assistance. . . .

The Obama administration’s recent announcement that it would start using a “stress test” for banks with assets over $100 billion as part of the financial aid process is seen as a prelude to some nationalization process. . . .

So we gave these two banks more assistance than their net market worth! All the weak banks need to be taken over and the shareholders wiped out. That way, in the future, shareholders will exercise vigilance in electing boards that will oversee these companies in a responsible manner.

If we don’t do this kind of thing with banks, autocompanies, home buyers etc., then history will just repeat itself. If a home buyer was duped by shady business practices, then the businesses involved should be penalized but otherwise, bailing the home buyers out is just like bailing the banks out and we’ll end up in the same place soon enough.

If any good comes out of this, it will be an international currency.

There will be plenty of banks taken over by the FDIC, but B of A and Citi will not be among them. First of all Charles Schumer seems to oppose it, which probably means it can’t happen. Second, they have a lot of money to reward political supporters with. Third, nobody is big enough to take them over, and the government has neither the people nor the expertise to run them.

The government will keep infusing capital until they stabilize. In any event, the shareholders will be the losers. They’re not all big capitalists, you know. Some people have them, their subsidiaries or their obligations in their 401k portfolios. Even their assets, if “fire saled” would cause other peoples’ portfolios to go down.

But regional banks and community banks will be shown no mercy, particularly the latter.

 

[AveSantaMaria]

Its interesting.

Nationalization of companies, i.e. state owned enterprises, are beds and seats of corruption in the developing world. In fact, many researchers blame much of the failure of developing countries on state-owned enterprises.

Occassionally they work, but I wonder if there will really be a difference between the United States and the West and the other countries of the world in the near future.

As we lose our Judeo-Christian heritage, we may lose everything that makes us special, little by little, piece by piece, without even realizing it as it happens.

See article: Judaism’s Sexual Revolution: Why Judaism Rejected Homosexuality catholiceducation.org/articles/homosexuality/ho0003.html