Tuesday, October 14, 2008

9 Banks are being nationalized: Hemingway style

The government did it again. And again.
The U.S. government has invested $250 billion in the country's banks and this interventionist move will partially nationalize nine American banks.
The economic emergency is said to restore confidence in financial markets, but in Talkingpointsmemo.com, Josh Marshal says the government needs to be more in the driver's seat about resources.
Also, In Correntewire.com they make fun of the bank’s “tough” position.
After the measure was announced the stocks gained 936.42 points, and the government will receive shares and warrants for common stock.
Blogs all over the Internet have expressed their opinions, and most are hesitant.
The Marginal Revolution said this offer was not voluntary, and because Paulson made it clear it was a one-time thing that should not be rejected.
The New York Times reminded us this is not a new move, because the government has taken stakes in railways, coal and steel over the last century.
Both conservatives and liberal sides have responded. Conservatives are afraid that this will form a hostile regime that garners tremendous grass-roots support.
Liberals are also apprehensive, asking themselves whether this is another move of a soon to be socialist government.
One blogger in particular talked about the latest headlines adorning newspapers, and the ones to come: "Hugo Chávez to meet with Bush to help nationalize banks, healthcare and oil. Bush:"Heckuva job Hugo."
This move is a brave one, because the country has been severely criticized for its involvement in economical policies lately.
I think it’s a necessary decision, and following models successfully achieved in European countries reassures me.
I don’t like to think that my tax money is going to bail out the people who got us into this mess.
At the same time, I don’t want to see our economy go down because no one else can do anything about it.
With how things are going right now, it’s hard to know what will happen next.

1 comment:

Chipo said...

it IS hard to know what'll happen next. I like your blog, good work! keep it up!