Monday, January 26, 2009

Pelosi: "Some people call that nationalization."

NY Times says Obama admin is likely to stop dancing around the issue and simply come out for complete and full nationalization of banks.

Senators Alexander and Corker will, I am sure, be warriors for freedom and oppose such a plan...Yea, Right.

“The case for full nationalization is far stronger now than it was a few months ago,” said Adam S. Posen, the deputy director of the Peterson Institute for International Economics. “If you don’t own the majority, you don’t get to fire the management, to wipe out the shareholders, to declare that you are just going to take the losses and start over. It’s the mistake the Japanese made in the ’90s.”

“I would guess that sometime in the next few weeks, President Obama and Tim Geithner,” he said, referring to the nominee for Treasury secretary, “will have to come out and say, ‘It’s much worse than we thought,’ and just bite the bullet.”