Republicans warming up to nationalizing banks?

[theanalogkid]

http://www.ft.com/cms/s/0/2ad3b750-fd27-11dd-a103-000077b07658.html?nclick_check=1

I think this is a really bad idea, not only because the government is swooping in to take over institution who made really bad decisions, but it will change the way the rational investor chooses to allocate his money. It's like a game of football all of a sudden using the rules of tennis to play the game.

IIRC, when Sweden started doing this, they suffered a recession and high unemployment for years. Why not just stop bailing them out and force them to liquidate everything instead of trying to prop up failures in the market?

[Nevada_Ballin]

http://www.ft.com/cms/s/0/2ad3b750-fd27-11dd-a103-000077b07658.html?nclick_check=1

I think this is a really bad idea, not only because the government is swooping in to take over institution who made really bad decisions, but it will change the way the rational investor chooses to allocate his money. It's like a game of football all of a sudden using the rules of tennis to play the game.

Hopefully it's going to be like a temporary "hit the reset button" kind of thing and then the assets will be dished back to privatization. And this isn't for all banks.

Keep in mind that the banks are bloated and really have no equity - the last resort is the government. The alternative is.... no banks at all.


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