Skip to main content

View Diary: Time to Nationalize Failing Banks (9 comments)

Comment Preferences

  •  oops...make that 'gorillas'. (1+ / 0-)
    Recommended by:
    •  easier to fight for something you understand (0+ / 0-)

      One of the reasons I think there's relatively little noise about this in progressive circles is that it's not something people understand at first glance. It's easy to look at a stimulus bill and say we need more mass transit, and get behind that.

      But most people who write about the bank bailouts make it unnecessarily complicated. They start talking about derivatives, bad banks, stock prices, and before you know it you're unsure about what there is to do. I think it's important to boil it down to a few basic points:

      1. Banks just can't all go belly up or we'll all screwed.
      1. Any form of government intervention that preserves the current system gives huge amounts of money to people who caused the problems in the first place, and gives them the opportunity to cause more problems at the next 'bubble' opportunity.
      1. Any solution needs to protect people's bank accounts, but not necessarily their investments in these failing banks. It needs to require that new management take over, that taxpayers get any benefits from starting these banks over from ground zero, and that all the bad debt be completely wiped away.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site