Posts Tagged ‘nationalization’

Is Nationalization The Right Solution?

The drums keep beating for bank nationalization throughout the blogosphere and even beyond. Today brings some rather unpleasant news on one of the government’s biggest companies — AIG — which ought to make us think twice. There isn’t anything definitive out yet but here from Reuters is how it seems to be shaping up: The revised […]

How Socialized Is The Financial System?

The concept of nationalization has been tossed around pretty loosely over the past few weeks. Usually it’s been discussed in the context of some sort of scheme to take over some of the failing big banks and reconstitute them for eventual return to private ownership. Not even the left of center authors that I’ve read have […]

Geithner Confirms The Muddle Through Theory

In defense of the post below which argues that the administration has opted for a policy of muddling through the banking crisis rather than taking decisive action, I present the following. It is from the WSJ Real Time Economics blog. Geithner: Nationalization Is “The Wrong Strategy” Treasury Secretary Timothy Geithner, in an interview with PBS’s […]

Nationalization Is Off The Table

So what really happened today. Leave out the Obama tax plan, that’s a seperate subject. Aside from that the Treasury rolled out their plan for capital assistance to banks as well as some details on their stress test and for the second straight day, Bernanke was saying over and over that they are not going to nationalize any […]

Citi Is Asking The Government To Convert Its Preferred-What’s Up?

Go out to dinner and the whole world crashes down. Give me a break. Apparently, according to the WSJ, Citi is in talks with the government about converting its preferred stock interest into common stock. The details are anything but clear, however, here is how the WSJ is reporting it: Under the scenario being considered, a […]

What’s Behind Geithner’s Stress Test?

I’ll probably follow this up with some more comments tomorrow but for now take a look at the New York Times article on Geithner’s “stress testing” and what might transpire. Keep in mind that the article is speculative but probably pretty close to reality. Nearly 100 federal banking regulators descended on Citigroup in New York on […]

Bank Nationalization: The Never Ending Debate

The debate rages-to nationalize or not. Early in the week the nationalization crowd seemed to be carrying the day but the cons have fought back. High on their lists of reasons not to go to government ownership is the contention that doing so would scare new investors away from banks and once you start where […]