Bank Nationalization Would Pose Hurdles For Obama

thehill.com:

The nationalization of even a handful of U.S. banks, which some analysts see as increasingly likely, would pose political problems for President Obama.

Obama has worked hard to portray himself as a centrist since his election, and federal ownership of troubled banks would play into arguments that he is a left-of-center politician.

Read the whole story: thehill.com

Comments

[Antifascist-08]

Any plan that gives the public the debt and the banks the profits if they return to solvency should be off the table. Enough of that. THat ISD part of the problem, not the solution.

These banks do not just have toxic assets, they ARE toxic institutions. They need to be completely cleansed.

The only thing that I will buy is a new national bank that gives us, the consumers a choice of where to bank. The Fed needs to be taken back from the world banks and we need a banking system that will never get back to 30% interest on credit cards and other predatory practices. Let the private banks be led by the national bank. Compete or get out.

Our currency does not belong in the hands of criminals and fascists. The fed should be in the hands of the people of this country, or abolished.

The public will gladly accept this because they will line up to put their money in a safe bank and get credit at reasonable rates. Any private banks should be left to succeed or fail. The only assets we should buy are ones from the sane people of this country, not speculators and con artists.

The idea that this sort of thing would somehow be politically damaging to the Dems, or anyone else who would support it is ludicrous.

[PhilipTaylor]

SIMPLE APPROACH TO FREEING UP LENDING

Problem: Big Banks will not lend money at reasonable rates and fees to consumers and businesses!

Attempted Solution: Paulson Plan: Pump Big Banks Full of Money! Result: Hoarding, Bonuses, and Mergers!

Correct Solution: Fund Government Bank to provide Low Fees/Rates to Consumers/Businesses:

1. Use Internet and ATM technology for the New Bank that can handle millions of loans.
2. Simple "Truth in Lending" Contracts for Homes, Autos, and other products and services.
3. No Branch Banks so No lines.
4. For those without Internet Access provide Library access to loan applicants.
5. Compete with surviving Private Banks

________________________________________________________________________

Final Steps

1. Downsize “Too Large to Fail” Banks and clean up their management and debts.
2. Bring Federal Reserve Duties under Treasury and the President and subject to Laws and Regulations of Congress.
3. Issue alternate currency based solely on the Full Faith of the US Government and required to pay taxes to compete with the Dollar!

Competition is what made America the most successful Country in the World!

[PhilipTaylor]

Consider the Stress these Banks along with Bush and the SEC put on Americans in applying your STRESS TEST!
______________________________________________________________

The term "Blind Eye" has never been more relevant that it was over the last eight years of the Bush EPOCH!

The SEC was particularly BAD as they allowed Ponzi Scheme after Ponzi Scheme, illegal Naked Shorting of company after company, illegal 30 to 1 up to 100 to 1 leveraged Shorting of company after company, and a FEE driven "0rgy" of Corrupt overcharging along with massive "skimming" of Bank resources into Executive and Managers pockets.

They produces $600 Trillion in Toxic Paper, created Fake Rated "AAA" Derivatives, developed "TRICK and TRAP" Mortgages, used unethical "Off-Balance-Sheet" Accounting, and drove companies into/near bankruptcy, requiring Taxpayer Bailouts! Hedge fund Managers averaging $500 Million per year, one making $3.7 Billion per year, shorting companies down to nothing bankrupting the Companies, Americans, and the World.

Worst was the "Housing Mortgage - Insurance Instrument Ponzi Scheme" with WS Banks offered "Devious Sure Loss" Mortgages to minorities, "Fake AAA Rated" paper with FEES, sold to unsuspecting victims, and then Creative Insurance Instruments to place massive Bets the mortgages and derivatives would LOSE.

Now markets are back or below the Clinton Presidency and even worse considering 8 years of inflation!

So the market, most pensions depend upon, has lost to these Tricksters/Skimmers/Banksters with their OFF-SHORE Accounts and multiple homes around the World, and at least one in the Hamptons or CT!

[Antifascist-08]

Yes! This problem is totally systemic. Sure the housing part may be the biggest and most obvious, but it also may be dwarfed by the insurance and derivative paper. It all needs to go.

if it has to be done slowly and carefully to avoid a total meltdown, fine, but it needs to get done and the people of this country need to be educated as to why, how and who did all this to begin with.

I don't buy the whole "political risk" argument one bit. This is just playing into the hands of the sharks who are still holding out for more bailout money or time to execute whatever apocalyptic plan they have made for this situation. The world banks are going to fight back hard on any takeovers or regulations.

This is it folks. Buckle up and stand your ground.

[Antifascist-08]

I like the ideas of a new bank, but i don't like the Internet part of it. That will not be trusted by the average people out there who don't live in cyberspace. There are a lot more of them than us, and frankly, i would be with them. Too many internet scammers to get in the way.

This will be a great stimulus program if the TARP money was used to start and leverage a new National Bank. BUy up some unused bank buildings (and put people to work painting them and fixing them up), hire back some good honest tellers and managers who were displaced by this fiasco and get to work. People would be lining up with their B of A account money in hand the next day.

We will serve the coffee and donuts for the ones who wait in line.

[apoyo]

He'll wait until the banks come crawling on their knees begging to be taken over by the government. No one will fault him then and he can get a better deal then, more open terms with a limited time of receivership. By, the look of things that may happen sooner than later. The banks have dug a pretty big hole for themselves and they failed to see how big a hole as shown by their behavior right after they got all that taxpayer money a few months ago. They continued to spend and live the high life like there was no tomorrow. Well, it's now midnight and all is not well.

[Antifascist-08]

I think this is his plan.

[DWX]

Why are so many Americans so AFRAID of nationalizing the BANKS? IS it because of PRIDE? We have a broken banking system around the world especially in the U.S.. Lenders are afraid of being dragged down into bankruptcies, so they are not willing to take the risk. We are at a crucial point in history where government must intervene and take over banks, for the world stands at the edge of an abyss. Just look around and take notice of DJI, Nikkei, Hang Seng, DAX, FTSE, and many others are all collapsing day-by-day. Foreclosures are climbing, companies are failing, and unemployment is rising. PRIDE is not going to save us ALL.

[Carolab]

We need to nationalize the FED (or simply abolish it),

[Antifascist-08]

Absolutely correct. This is VERY important.

[TJCole]

This is a good example of why we should change the Constitutional term of President to one 6 year term of office...

This way we could elect leaders and they could govern, and focus on governing and not politics and be forced to be politicians, and not Presidents...

This way they can make the tough calls that are necessary in times of crisis and pursue their vision if they have one, and share it openly and honestly with the American people without political considerations...of their reelection...

[Antifascist-08]

Well, depending on who might be in office at the time, of course. If it is the wrong person, it is just that much longer to wait to get them out.

I think the Prez is not afraid to take the big step when the time is right.

[jerrypl]

Wake up Mr. President---it is time to totally nationalize every zombie bank you are giving money to. We already own them, therefore it is ours. Send the shareholders and bondholders, and CEO-CFOs walking.

http://eye-on-washington.blogspot.com

[Antifascist-08]

The one thing I like the best about this article is the emphasis on not allowing the bad banks to get started again with their predictable plans to rip off the people and keep us enslaved.

I too think Obama's interest in keeping a private banking, debt driven economy is misguided, if that is what he really plans.

We MUST get out of this kind of spend baby spend economy. Credit is important, yes, but it should not be the end all for our economy. That is where we are now. We don't need to jump start the monster that is eating us alive.

[NoCents]

More Bush Economic Policy and far from the center. Nationalization means the People get the debt, but the bank keep the privatized profit. That is not Nationalization it is called extortion, fraud and collusion.

Hey, if you are out of work, at least for now you are not financing all of this.

[ZellaBee]

They have been planning to nationalize for a long time. It is a Republican NWO idea.

[PhilipB]

Hi,
That is an interesting comment. What would be the point? Or why would they want to do that/?control?Thanks

[jmndodge]

The missing discussion is the history. We failed for eight years to expose the change in American society which came to the front in the Regan years and operated under the Radar during Clinton. The last eight years however, saw such dramatic movement that the mainstream media had no idea how to even approach telling the story. We are now using the words socialism and communism, but the word we failed to use during the last eight years was the word fascism. The Tarp program bailed out the very ones who by lobby pressure brought about the crisis. For the last eight years they dictated the social changes which brought bout our economic collapse. So far, most of our investment simply is propping up this fascist agenda, and it is now critical to address the problem to keep our society free, prosperous, and democratic.

[Antifascist-08]

Excellent

[DXM]

Maybe we should take a page out of the GOP playbook. The GOP understands the power of words to shape public opinion. Instead of using the word "nationalization", we should use a more accurate term: "receivership". These bad banks are bankrupt and the government will place them in receivership to sell off their assets to protect depositors and minimize the impact to taxpayers. Stockholders get nothing (since they got the benefits from when the banks were allegedly profitable, they take the ultimate hit when they fail), bond holders get whatever is left over and the executives who ran the business into the ground get less than nothing (except for an investigation into their activities to root out cases of fraud). This isn't nationalization - it is the controlled dissolution of a failed business meant to protect the nation's economy from a toxic business.

[bygollymissmolly]

Obama has worked hard to portray himself as a centrist since his election, and federal ownership of troubled banks would play into arguments that he is a left-of-center politician.
-----------------------
I don't think it will bother him a bit if the Republicant's want to portray him in that light. President Obama will do what is right for this country and not worry about the political fallout.

[NoCents]

Let's see, he gives you $400 less in tax of your owned hard earn wages and then takes $11,300 from each worker and gives you the net debt of $10,900.

Political fallout or s t u p i d w o r k e r s is there a difference. Robin Hood he is not

[rayanthony]

The problem he will face is convincing Americans that this isn't really Socialism/Communism

[bygollymissmolly]

The real problem is that most people in this country don't know what socialism or communism really are. The fact that you combine them as a single entity shows that you don't know either.

[1dogs2]

Most Americans also don't seem to recognize fascism when it bites their noses.

[rayanthony]

Socialism is the illegetament child of Communism...They are related...closeley

united soviet SOCIALIST republic

[NoCents]

With Socialism and Communism the public own the means of production. Nationalization in this form means you get the debt and they get the profit. That's American capitalism as usual. Goes hand in hand with the government of the lobbyist

[rayanthony]

The public owns nothing! All is the states.

(1)Abolition of Private Property
(2)Heavy Progressive Income Tax - ALLREADY HAVE THIS
(3)Abolition of Rights of Inheritance - DEATH TAX
(4)Confiscation of Property Rights
(5)Central Bank - THAT SOUNDS FAMILIAR
(6)Government Ownership of Communication and Transportation
(7)Government Ownership of Factories and Agriculture
(8)Government Control of Labor
(9)Corporate Farms and Regional Planning
(10)Government Control of Education.

[Freenation]

Banks created all the mess by their practices of greed, stupidity and more greed, there is a limit to how much dough they can get receive from Federal government...Nationalization if happens will not be Obama but banks fault....

[NoCents]

Do you really think a bank who borrows money from the Fed for 0% interest and loans it to you with a Credit Card for 30% is going to give that much profit to the people

Ha, Ha, Ha, LOL.

[DWX]

As long as banks are watching their bottom line and holding back on new loans, we will never fix this credit problem. In the meantime, banks are sinking because they cannot make profit without making new loans. The irony is there is no lesser of two evil here. Banks, once again, MUST become a lending machine. Without credit, any amount of stimulus is not going to do any good to the economy since the epicenter of economic machinery has permanently stalled.

[funkalicious]

Bear Sterns, Washington Mutual, Merrill Lynch, CountryWide,Lehman Bros, and the rest of the banks that the FDIC took over Nationalization of banks WTF?

It is not as if this hasn't happened in our recent past. it is not as if the government needs to run the banking system just flush some garbage and sell off the assets to bankers who know how to run banks not keep propping up failed banks with incompetent management.

Zombie banks will suck the life blood out of our economy, not just the stock market but trade and it inhibits the trust needed to have a healthy environment for trade and credit.

It is Time to get Honest with the accounting problem. The first loss is the easiest to take, if we do not clear the books we will die by a thousand cuts a long slow malingering and painful death.

[AhnAmuru]

Just how qualified are these business executives?

[AhnAmuru]

Nationalization is a no brainer.

The line between the US & third world nations has almost completely blurred - only superior infrastructure from the "boom" days remain. (Perhaps a tad overstated)

In fact, while some bastions of capitalism exist, lets not kid ourselves - we all know that the south is inherently third world in both development & mentality.

Some delude theselves referencing Keynesian & laissez faire models, but consider there is nothing more socialist than social security, welfare, farm subsidys - pretty much the "great' soviet. Like the writer says there are already a number of Bush era "peoples' banks".

Disagree? Wait till the Dow hits 5,000 (-) offloading all that "feel good" artificial wealth. We'll ravel like the USSR did. Surprised that nobody saw this coming? Neither did the soviets.

In rebuttal, the writer predictably makes a political analysis, he seems to lend legitimacy to palin which is objectionable and inflexibly assumes that nationalization will be long term.

Get real "y'all'.

[NoCents]

Assets - Liabilities / Number of Shares = the Asset Value of a Share of Stock.

Anyone ask the question what are the bank's Asset Value? Hard to identify the value of Checking, Savings, CD, Buildings, Stock etc. Wonder is we could use DOLLARS to evaluate the value?

It is all about the $54 Trillion SWAP and Derivitive the people are going to purchase for Debt. Nationalization of Debt Only.

If the unemployed have to take a reading and math test maybe Congress should do that before each bill they pass

[unbozo]

It's not left of center, It's left of stupid.

[bygollymissmolly]

Any why would that be. If the choice is to let the banks fail or nationalizing them, which would you choose?

[rayanthony]

You allow them to fail. Propping them up or having the government run them is a big mistake. The government isn't good at running anything. Why would they be good at this?

[unbozo]

I'd nationalize them. and to clear things up, I'm sauiing that the center is stupid and not the left.