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If the problem is that banks STILL don't want to loan money- then it's time to nationalize them.

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dysfunctional press Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 12:50 PM
Original message
If the problem is that banks STILL don't want to loan money- then it's time to nationalize them.
"the bailout" was supposed to unfreeze the credit markets- but apparently that isn't happening. for instance- the chicago company where workers are staging a sit-in over a sudden closure- the closure is because of the company's line of credit no longer being there.
if the banks want to hedge their bets by hording the bailout money that was supposed to get the balls rolling again- then it's time for new management and a new way of doing things. nationalize the entire banking system.
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w4rma Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 12:52 PM
Response to Original message
1. Agreed. (nt)
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Andy823 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:11 PM
Response to Original message
2. Some of the bailout money
Has been used to buy up other banks, and that's not right either, not if they won't lend money. This whole bank bailout is just another scam by Bush and gang to steal all the money they can before he gets out of office. They "want" the economy to tank big time so they can put all the blame for 8 years of Bush's screw ups on Obama and the democrats. On the other hand a lot of democrats in congress are in the pockets of these financial institutions and are just as much to blame as the republicans. Change has to start at the top with Obama and work it's way down through congress. Any democrat who isn't doing the will of the people needs to be replaced with one that will.
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unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:30 PM
Response to Reply #2
5. buying up other companies is not, in and of itself, wrong for recipients of bailout bucks.
but i agree that they need to get back to lending. if an acquisition gives them more assets against which to lend, and/or if the stronger company is in a better position to put the weaker company's assets to work, then it's a good idea.

the problem is that that's not really what's happening. the strong companies simply see more profit and less risk by buying longer-term assets at fire sale prices buy swallowing up bankrupt or near-bankrupt companies. their game is not to get lending, but simply to wait until a normal market for the long-term assets returns and make an easy profit.

THAT is what's wrong with the recent acquisitions.
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Gman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:35 PM
Response to Original message
3. At the same time the banks are starting to lose out on good investments
as small and medium size businesses turn to private loans and investors.
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SomeGuyInEagan Donating Member (872 posts) Send PM | Profile | Ignore Mon Dec-08-08 02:30 PM
Response to Reply #3
4. Yep.
There's money to be made backing medium and small business in this country, even in these times. If those running the banks can't see that, it's time Washington pointed them in that direction by firing them as the first act of nationalizing the banks.

"I could never understand why the people of France beheaded Marie Antoinette ... now I get it." - Lewis Black
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newtothegame Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:35 PM
Response to Original message
6. Why are they taking over the factory then?
Should they go sit-in at the bank?
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Freddie Stubbs Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:36 PM
Response to Original message
7. The banks needed a bailout because they made risky investments and loans
We didn't give them money to continue making risky investments and loans.
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Rosco T. Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:37 PM
Response to Original message
8. I have been told by a reliable source, you need a FICO of 770 to get a loan now. n/m
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leftofthedial Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:37 PM
Response to Original message
9. the "bailout" was just theft
pure and simple
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reggie the dog Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:00 PM
Response to Original message
10. The state should nationalize the banks 100 percent
and then give zero interest loans to people to buy houses and the new GM electric and hybrid cars. That would kick start the economy.
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Odin2005 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:20 PM
Response to Reply #10
12. Good idea! n/t.
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onenote Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 06:12 PM
Response to Reply #10
21. and ponies. they should give everyone ponies too!!
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Odin2005 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:18 PM
Response to Original message
11. I totally agree.
Edited on Mon Dec-08-08 03:18 PM by Odin2005
Hoarding money is one of the things that make depressions worse and is a symptom of deflation. It's why FDR order gold to be confiscated.

I'm feeling like a total idiot for being one of the "thank God it passed" people...
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Festivito Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:21 PM
Response to Original message
13. Start our own bank. Run it through the post office.
That's what other countries do. Can have 24 hour access in certain areas. Can find a branch anywhere.
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harun Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:23 PM
Response to Original message
14. Some of them are already partly nationalized with how much stock
the gov't is buying in them. But I agree, the gov't can step in and buy one. It would scare the sh*t out of the rest of them and they would do whatever the gov't wanted them to do then. Wouldn't need to nationalize all of them.
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Donnachaidh Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 04:06 PM
Response to Original message
15. I would so love to see B of A nationalized
They are a shithole bank, and they have been for DECADES.
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deaniac21 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 04:21 PM
Response to Original message
16. The government could show the big 3 how to operate with a
ten trillion dollar deficit! No sweat!
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Greyhound Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 04:23 PM
Response to Original message
17. Far past time.
Is there any chance the sheeple will ever learn?
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KG Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 04:24 PM
Response to Original message
18. Thank Gawd It Passed!
because where would the staus quo be without idiot defenders amongst those it seeks to screw over.
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DLnyc Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 05:14 PM
Response to Original message
19. This was a main lesson after the Great Depression: Banking must be under
government control. Since today's banks have made it their business to break free of government regulation, they are really rogue operations. They need to agree to strict regulation or immediately be nationalized. The US government can continue to honor deposits by printing money, while raising reserve requirements/practices to compensate for any inflationary pressures. The losers will be high-flying gamblers and people who bet on those gamblers by buying stock in their companies. Too bad.
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western mass Donating Member (718 posts) Send PM | Profile | Ignore Mon Dec-08-08 06:11 PM
Response to Original message
20. Should have been the FIRST step. Same for the Auto companies.
Any company needs a taxpayer bailout to survive? Great! Now the taxpayer owns you.

Anything less is corporate welfare.
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