In an interview with Governor Arnold Schwarzenegger on This Week with George Stephanopoulos the governor was asked about what he thought about "nationalizing" the banks. His answer was refreshing, calm and sane!
STEPHANOPOULOS: You've talked often about how you first came to the United States in part because of your hatred of socialism, of the whole socialist system. So I wonder, when you look at government coming in, taking over mortgage companies, taking over insurance companies, the prospect now of nationalization of banks, is that something you now see as necessary?
SCHWARZENEGGER: Well, I -- first of all, I think that we have a really good system here in America. You don't have to talk about nationalization. All it basically says is that if a bank doesn't have the money to -- to give their customers, so if it, you know, defaults in some way, that the federal government comes in, because it secures those moneys.
SCHWARZENEGGER: And so they come in, and they help out, that they go with the bank, because they cannot make the payments anymore, and -- and to business. So the federal government always had that right to take over. So it's not nationalizing anything. I don't see it as such. There's a difference of the way it is in Europe, where the -- where the federal government owns some of those banks, whereas here only if there is a problem financially that the federal government comes in and takes over and helps out.
STEPHANOPOULOS: Well, and we're seeing that now...
SCHWARZENEGGER: And that's a huge service to the people of America, to have that security to know that, no matter what happens, the federal government will step in and will get your money.
STEPHANOPOULOS: But then the question is, these -- these capital infusions from the federal government may give them essentially majority stake in some of the biggest banks in the country. Is that something you're prepared to accept?
SCHWARZENEGGER: Well, with some banks, that's maybe necessary. I think the most important thing is, how do we create stability in this country? And I think this is why it is very important that the administration has a very clear message and not change it.
I think that what America has really gone through, a huge challenge just this last year, because we have had a different administration. They have a different way of thinking. No -- no one here is right or wrong, but a different way of thinking.
Then, in the middle of this crisis, you had a change of administration. Now this administration is in for a month. You can't expect them all of a sudden to have all the answers and all of those things. They need still time to warm up and to get going.
And he has some -- Obama has some terrific people there in those leadership positions. And so I have total confidence in them.
Hope more folks get it and can keep the media from fanning the flames of distraction