As previously noted, the dilly dallying around with these horrific banks and their grossly incompetant management must come to an end.
Sometimes the market gets it just right: The selloff in the financial sector might very well be the cumulative conclusion reached by a preponderance of traders that this sector cannot be rescued by mere recapitalization alone. The market, looking to open down 200 points, and cloosing in on those November lows, may also be sensing the inevitable nationalization.
The Brits, soon to nationalize Barclays, have the right idea: Go Swedish. Wipe out shareholders, bond holders, and all the bad debt and junk paper these firms hold. Zero it out, spin out the assets with clean balance sheets.
If the behavior of these corporate executives is nothing short than egregious: Their embarassing attitudes, foolish excesses, sense of entitled greed is annoying but tolerable when its on their ownshareholders dime; when the taxpayer is footing the bill, it is utterly unacceptable.
To paraphrase a Mellon, its time to liquidate the banks, liquidate capital, liquidate shareholders, liquidate bond holders . . .
Sweden’s Fix for Banks: Nationalize Them
NYT, January 22, 2009
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.