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GOP Senator Sees Bank Nationalization

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Anonymous

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GOP Senator Sees Bank Nationalization

Tuesday, February 17, 2009 9:05 AM

By: Greg Brown Article Font Size




U.S. Sen. Lindsey Graham (R-SC), a member of the Senate Banking Committee, says that nationalization might turn out to be the best answer for what many observers have called an "insolvent" U.S. banking system.


Graham took the position on Sunday on ABC's "This Week" program.


"This idea of nationalizing banks is not comfortable, but I think we have gotten so many toxic assets spread throughout the banking and financial community throughout the world, that we're going to have to do something that no one ever envisioned a year ago — something no one likes," Graham told host George Stephanopoulos.


President Barack Obama and Treasury Secretary Tim Geithner last week began the second portion of the origional $700 billion bank rescue plan by saying that it expects to spend much more, perhaps $1.5 trillion in buying up bad assets and in support for new lending.


The focus, though, would be on finding private investors, not outright nationalization.


"We want to retain a strong sense of private capital, fulfilling the core investment needs of this country," Obama told ABC's "Nightline" program.


NYU economist Nouriel Roubini, among others, has flatly stated that U.S. bank are incapable of digging their own way out of the current mess.


"The United States banking system is effectively insolvent," Roubini told The New York Times.


Roubini estimates that total losses on loans by U.S. financial firms and the fall in the market value of their assets will reach $3.6 trillion, up from his previous estimate of $2 trillion, according to the newspaper.
 
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Anonymous

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TexasBred said:
Thought the bad ones had already been nationalized with more transfusions on the way.

But Sandhusker doesn't have Mr. Obama for a boss yet... :wink: If the Bush Bust keeps rolling along in domino style it won't be long...Even old Lindsey can see how bad things are..

I see where Germany legislated yesterday to start nationalizing theirs....
 

TexasBred

Well-known member
Oldtimer said:
TexasBred said:
Thought the bad ones had already been nationalized with more transfusions on the way.

But Sandhusker doesn't have Mr. Obama for a boss yet... :wink: If the Bush Bust keeps rolling along in domino style it won't be long...Even old Lindsey can see how bad things are..

I see where Germany legislated yesterday to start nationalizing theirs....

That's Germany. There is no need to nationalize anything. We have thousands of very strong banks across the country doing a great job of serving the public, meeting loan and deposit needs and building strong reserves. You don't nationalize bad banks. You shut them down, sell the assets to the good banks and put the bad ones in the history books.
 
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Anonymous

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TexasBred said:
Oldtimer said:
TexasBred said:
Thought the bad ones had already been nationalized with more transfusions on the way.

But Sandhusker doesn't have Mr. Obama for a boss yet... :wink: If the Bush Bust keeps rolling along in domino style it won't be long...Even old Lindsey can see how bad things are..

I see where Germany legislated yesterday to start nationalizing theirs....

That's Germany. There is no need to nationalize anything. We have thousands of very strong banks across the country doing a great job of serving the public, meeting loan and deposit needs and building strong reserves. You don't nationalize bad banks. You shut them down, sell the assets to the good banks and put the bad ones in the history books.

Won't work- 15-20 years of failure to enforce anti trust laws- and we have too many of these institutions that are "too big to fail"...

We need to take a page out of history and pick up Teddy's big stick- and start swinging it left and right..

I believe in corporations. They are indispensable instruments of our modern civilization; but I believe that they should be so supervised and so regulated that they shall act for the interest of the community as a whole.
~Theodore Roosevelt
 

TexasBred

Well-known member
There is no company "too big to fail". Numerous huge companies have failed and the country was always the better for it. Our government is paying people to perform poorly. That ain't right. Worthless assets have been written off for ages. What do you think is going on right now??
 

Mrs.Greg

Well-known member
TexasBred said:
There is no company "too big to fail". Numerous huge companies have failed and the country was always the better for it. Our government is paying people to perform poorly. That ain't right. Worthless assets have been written off for ages. What do you think is going on right now??
I totally agree,our news reported last eve,it looks like our auto industry is going to get another chunk of money to stay running...this ticks me off,lower the prices on vehicals,and wages to BOTH the workers and CEO's. They got themselves into this mess why the heck should we pay to get them out of it.... :?
 

Mrs.Greg

Well-known member
hypocritexposer said:
and wages to BOTH the workers and CEO's

the unions are holding them hostage on wages! Meanwhile one of them, forget which one, spent $1 Billion of their bailout in Brasil!
I understand the unions holding them hostage which is pure BS,the workers could lose their jobs,the NEED to take a wage decrease but in the same instance IF they do lose their jobs they won't be walking out with millions of dollars pkg like the CEO's will that disgusts me as badly as the workers wages.

Most what the wages of ALL the workers prove to me is that industry was making disgusting amounts of money off people silly enough to have to use vehical's... :wink:
 

hypocritexposer

Well-known member
The best way to fight prices that are not competitive is to not to buy the product. Which is what the consumer is doing, I guess?

And if you don't sell enough product at an acceptable profit margin, you go out of business. And a more profitable company takes your place.

Both executives and workers/unions are responsible. By governments bailing out failing companies, they are absolutely screwing up this system, that has worked for years.
 

TexasBred

Well-known member
hypocritexposer said:
The best way to fight prices that are not competitive is to not to buy the product. Which is what the consumer is doing, I guess?

And if you don't sell enough product at an acceptable profit margin, you go out of business. And a more profitable company takes your place.

Both executives and workers/unions are responsible. By governments bailing out failing companies, they are absolutely screwing up this system, that has worked for years.

AND quit making so many models of the same darn car. We don't need 40 diff. Chevys to choose from.
 
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Anonymous

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The continuing saga of the once in a hundred years Bush Bust.....

Bernanke: Nationalization Would Be Short

Thursday, February 19, 2009 8:50 AM

By: Greg Brown Article Font Size



Federal Chairman Ben Bernanke says the recently debated idea of nationalizing troubled U.S. banks — if necessary — would be short-lived.


“As a general rule, it’s very challenging for governments to manage banks for a protracted period,” Bernanke said Wednedsay at the National Press Club.


“There is the additional problem if you have a government-run institution, you tend to lose their franchise value, and counterparties don’t like to deal with you because they don’t know your future.


“Whatever action would need to be taken at one point or another, there’s a very strong commitment on the part of the administration to keep banks private and return them to private hands as quickly as possible.”


Former Fed Chairman and longtime free-market icon Alan Greenspan said earlier this week that nationalization of U.S. banks might be the “least bad” way forward in the ongoing financial system collapse.


In making the comment, Greenspan joined Republican Senator Lindsay Graham (R-SC), a member of the Senate Banking Committee, in testing the waters for support of the idea of letting government simply take over failing banks. Germany also this week cleared the way for bank nationalization as a last resort.


“It may be necessary to temporarily nationalize some banks in order to facilitate a swift and orderly restructuring,” Greenspan told the Financial Times in an interview.


“I understand that once in a hundred years this is what you do.”


Greenspan made the comments before speaking to the Economic Club of New York.
 
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