Friday, February 20, 2009
The Nationalization Of U.S. Banks
Well well well... after making legislation in the 1990's pretty much mandating that banks lend money to people who couldn't afford loans for housing, and later rewarding those banks with TARP money when they became insolvent after this ill conceived universal housing scheme fell apart...it seems that these banks are now in for a dose of government nationalization. You'd think those highly paid CEO's might have seen this one coming.
Help from Washington DC always comes with strings attached.
Strings attached translates into control.
But you know what? People still say - The key to nationalization is that the government actually owns and runs the institution, and that is not what is happening "in totality".
They say - we'd just be nationalizing parts of banks - or just a "little bit".
All I have to say is that once they let that camel's nose into this tent by taking "a little control" of these TARP receiving banking institutions, then it won't be much longer before total control is seized, especially if there is some sort of "crisis" or "national emergency".
Can someone please, please, please look at some history???
France nationalized their banks in the 1980s, and those efforts failed miserably, so much so that the banks ended up going back to being held in private hands again. In the 1990's East Asian banks also nationalized and they devolved into inefficient state-run institutions. There are so many problems inherent in state run banking that it just become one huge inefficient behemoth. It can wipe out shareholders, and government also dictates who runs the bank and how.
The market isn't so thrilled with the notion of bank nationalization as evidenced by the plummeting value of their preferred shares of stock (particularly by Citi and Bank of America).
Now they stand poised to be renamed "Bank of Amerika" and "Commie Group"
I'm telling you, this whole housing bubble and banking crisis was started way back in the Clinton administration, and now the Clintonistas are back in the Obama cabinet to finish off the Socialist agenda they had in mind all along. No great surprise.
So what does that mean to us?
It's just one more scored for Karl Marx's "10 Planks" to seize power and destroy freedom:
specifically number 5: Centralization of Credit in the Hands of the State, by Means of a National Bank with State Capital and an Exclusive Monopoly.
Hope and Change?
That's what you get folks.
Keep voting Progressives and Statists into office and that's what you get.
An expensive nanny state that offers little else than tyranny.
And you can take that to the bank!