Partial Bank Nationalization—a Good Idea?

Reader Comments
Back to article

The sums of money being parceled out have been enormous but nothing good has come out if it.
Where before banks loaned money to anyone who could but an X on the page, they now won't lend to anyone because they are paralyzed with fear at taking further losses.
The Swedish example of Nationalizing a collapsed banking sector is something to learn from.
We should resort to it before there are more trillions lost in the financial black hole.

Rick Burque of MA 1:49PM January 26, 2009

The federal government created this mess, not the financial sector. Google "Community Reinvestment Act." That should get you started down the road of truth. Then, if you really want to sink your teeth in deep, read this article: http://www.independent.org/publications/policy_reports/detail.asp?type=full&id=30.

Jeff of OH 1:50PM November 12, 2008

Well,there is no such thing as the "free market." Somebody, somewhere is always trying to dictate it. We might as well nationalize them anyway and we will not have anymore of these meltdowns.

Watercloset of VT 11:26PM November 07, 2008

In a nut shell. George W. Bush's legacy to the American public. Wasted time, wasted money, wasted lives. Destroyed in 8 years what our culture had cultivated in the world for nearly 70 years. Respect, must be earned not demanded. He missused the hope of good samaritan work that help other coutries really have a example of real democracy. He made us all like him, corrupt and self centered interst. Not American.
Wake up folks,fire the morons destroying our dreams and real ideology of what is good. This is what 3rd world corruption looks like - Past eight years of special interest. Unfortunetely, Mr. Macain, is too close to the same.

jay of WV 10:11PM October 15, 2008

Why does McCain go on and on about all the negativety about Obama.
McCain do you have anything else to say talk about the issues here not what happen 20 years ago.

of TX 3:08PM October 15, 2008

More money to borrow
Im just not getting it.. we are in this mess because of to much debt.. so We invest 750 billion so banks can lend more... doesnt seem to add up?
Mike of mA post
***************************************************************
I agree with the above post. This bailout of $700B has gone above $1T (i.e. Lehman's, AIG, Freddie & Fannie, US automakers) already, and no one seems to be asking the question, where is this money coming from? Enough with the bandaid approach. Does anyone find Paulson credible to fix this problem?
Regarding "Partial" Bank nationalization, there is no such thing as "Partial", we either adopt "Socialism" which we have appeared to do or allow the "free market" to fix itself which Congress seems to be determined to PREVENT! So, the answer to the question, "Is it a good idea?", the answer is "NO"!
Congress would have us believe it is "Wall Street," or the other party, but Wall Street acted based on how Congress over the years, Democrats and Republicans, allow them to!
November 4th should answer the country's opinion as every Congressman and a 1/3 of Senate is to answer for this economic mess. Any incumbent who voted for this bailout package will hoepfully have the answer!

Tim of LA 3:41AM October 15, 2008

Im just not getting it.. we are in this mess because of to much debt.. so We invest 750 billion so banks can lend more... doesnt seem to add up?
We need another baby boom to produce more...

mike of MA 6:26PM October 14, 2008

I agree the government needs to take more control in this matter. It is a situation that has been going on for far to long! Alot longer than 8 years. I feel some of the CEO's after stepping down and walked away with millions should be required to give some of that money back!

of CA 12:36PM October 14, 2008

Should the governmnent take this opportunity to reel in the corporate citizens of this country and make them as accountable for their actions as private citizens? YES!
This country has bowed to the corporate lion for the past 30+ years giving corporations more and more power to change and rule our lives. In the past 8 years we have made the corporation king in a country that is supposed to be ruled by reason and discourse. It is time to pay the piper for John Q Corporation as well as John Q Banker. We in this country have given the corporate citizen fewer taxes, less oversight (think imports from China, deforestation and, my favorite, the clean air bill that doesn't guarantee clean air). We left our post in understanding what was going on in our country and let the foxes run the hen house. We need to kick them out and, yes, make them pay their fair share of the public economy. They have taken the money and run. The corporate citizen has not used their advantages to create new jobs in this country, they have not taken care of their fellow citizen (employees) they have looked at the give-away as their right because they are rich; therefore, the control SHOULD fall to them. This is not what the farmers who created this country contrived when they created the Constitution of the United States but through the past eight years we have seen what the abuse to the system can do.
It is time to stand up and be counted. It is time to read your voter's material, ask questions, state your opinions, write your congress, legislature both state and federal and be active in the process we call democracy. If we do not change the trend of ignorance of what is happening in this country we are doomed to be the worker drones of the future until we are used up and cast aside. It has begun already. How many in this country no longer have a retirement of any kind? How many corporations have been allowed to call a 401k plan their bow to taking care of their workers? We are bankrupting our country to make rich people through corporations much richer with the promise of the trickle down affect. Well the only thing trickling down is the impoverishing and destruction of our middle class and the dumbing down of our citizens.
If we don't demand our fiscal rights in this country be sure that Social Security will be gone. Medical assistance for the less fortunate and aged will be gone. The right to education, gone. With these last vestiges of an educated citizenry, be prepared to roam the streets for the cast offs of our betters, the kings and queens of the corporation. Those beauties who do not sow but oh do they reap, as long as they can keep the majority in this country ignorant and quiet.
Stand up, read, talk, vote!

Brenda Azurmendi of OR 11:46AM October 14, 2008

Yes, the government should. The banks have contributed mightily to the problems affecting the economy but to watch them go under would be devastating. However, this should be done in such a way that it is temporary and the government should insist on making a profit in the long run, sell it's stake in the banks once matters improve, and put regulations into place throughout the financial industry to prevent something like this from ever happening again. Sad to say, this experience shows the downside to unfettered capitalism.

Scott of MN 11:38AM October 14, 2008