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Nationalize the Banks!

I was watching "This Week" on ABC yesterday and was mildly amused by an exchange between Republican Lindsay Graham (Senator, South Carolina) and liberal Democrat from my own home state of New York, Charles Schumer. Graham said: "If you put most of our major banks under a stress test, they're going to fail. 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. Banking and housing are the root cause of this problem. ... I would not take off [the table] the idea of nationalizing the banks" (see here as well).

Now here's the height of irony: Chuck Schumer opposed the idea: "I would not be for nationalizing. Government's not good at making these decisions as to who gets loans and how this happens."

Well, good God... if we have to depend on the Democrats to tell the GOP that nationalizing isn't a good idea...

Of course, this is all One Big Joke anyway... there is virtually no difference between Republicans and Democrats, and the banks and the government are so incestuously intertwined, as I've argued here, that it is almost impossible to see where one entity ends, and the other begins. That's why we call it a "state-banking nexus." Democrat Maxine Waters of California understood this much, using Citibank as an example; with all the money that the taxpayers have given Citibank, that bank "is probably almost nationalized" already.

And the list goes on and on and on... from Citibank to Bank of America... the state is there for a taxpayer bailout that will further insulate the system from the kinds of revolutionary corrections that are required.



First off: let me wish you happy birthday again ( :

The ideological incoherence of the parties has really reached a crescendo lately.

Look at this quote from Obama:

"It is absolutely true that we can't depend on government alone to create jobs or economic growth. That is and must be the role of the private sector. But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back into life. It is only government that can break the vicious cycle where lost jobs lead to people spending less money, which leads to even more layoffs. And breaking that cycle is exactly what the plan that's moving through Congress is designed to do."

So, you can't depend on the government to create wealth, but the government must be used to create wealth in a moment of crisis? That's like saying the Constitution is great, but let's not use it during a crisis. It's precisely in a crisis when a good principle or form of organization is needed. Obama is spouting pragmatic contradictions. And it's simply a blatant lie that the government has any resources to "jolt" the economy back to life. It's spending at a deficit and living on the credit of foreign central banks.


Glad to see you posting again. Love ya!

Since I've never heard Schumer's name connected with anything remotely within the realm of tolerable, I'm tempted to think we ought to nationalize the banks. As Nietzsche said, "At times one remains faithful to a cause only because its opponents do not cease to be insipid." The reverse is sometimes also true.

Actually, let's not nationalize. That's my view.