Thread: Bank nationalisation gains ground with Republicans

If this happens my money's going into the mattress!!!!
Bank nationalisation gains ground with Republicans
By Edward Luce and Krishna Guha

Published: February 17 2009 19:44 | Last updated: February 17 2009 21:31

Nationalisation, long regarded in Washington as a folly of Europeans, is gaining rapid ground among US opinion-formers. Stranger still, many of those talking about federal ownership of banks are Republicans.

Lindsey Graham, a Republican senator for South Carolina, said that many of his colleagues, including John McCain, the defeated presidential candidate, agreed with his view that nationalisation of some banks should be “on the tableâ€

Three options.

1. Let the big banks and financial institutions that were reckless with their managment fail.

This option really never was an option. This is why McCain was the Republican nominee, and why Wonder Boy was the Democrats pick. The bankers had the winning cards up there sleeves.

2. Bailouts. Socialistic, yes. Many doubt this will work. Howewver this does give the big banks that are too big to fail the ability to buy other banks with tax payer monies, then, (this helps to consolidate the banks with their good and bad assets into fewer and potentially larger institutions) now on to step no.3.

3. Nationalize the troubled banks and institutions. Socialistic, yes. The government takes control, fixes the books, (takes the troubled assets or adjusts them) then sells the institution back to the big money at auction for considerable discounts with clean books and assets. What a deal.

Nos. 2 and 3 being socialistic in nature sends a very bad signal to the money managers and the markets, they always will have an out when things go wrong. My Big Brother has deep pockets.

The good news, the American tax payers will feel like kings for a day or two as they will be owners of banks. Too bad they dearly overpaid for them. P.T. Barnum had a name for these kinds of folks.............?

Wonder Boy in the near future, 'Change?........sorry, I'm all tapped out.'

Next bailout package............?

Disclaimer. Please note that this was just my $.02's worth, and was not adjusted for inflation.

I dont think the GOP would back this. Grahm and Mccain would but I cant see anyone else. I could be wrong though.

You only need 2 or 3 Republicans and anything is possible.