Comments on: Favoring Nationalization Are . . .

By: Whites of the Knuckles or Whites of the Eyes? « gross domestic product, inc.

Sat, 02 May 2009 06:31:30 +0000

[...] joke. The specter of Bank Nationalization is passing the lips of those “that matter” on both sides of the isle with methodical (and growing) frequency. The Autos (and the US) better pray Apple wants the Auto [...]

By: samro

samro — Tue, 24 Feb 2009 15:25:54 +0000

you can now add Bill Gross to the “against nationalization” list.

By: rnunna

rnunna — Mon, 23 Feb 2009 23:00:52 +0000

My sense is that Ricardo Caballero’s arguments against nationalization have had some sway inside the Obama administration. He very much believes the current crisis to be one of ‘liquidity’ and not ’solvency’.

http://blogs.ft.com/economistsforum/2009/02/nationalisation-without-prices-a-recipe-for-disaster/

By: Shnaps

Shnaps — Mon, 23 Feb 2009 22:57:24 +0000

First off, Barry, I really enjoyed your reponses to commenter “Marcus”. If I didn’t value my anonymity so much, I’d suggest myself on your list. I’ve been banging this drum long before most of these folks.

Last Fall, I was advocating a nationalization of Wells Fargo, in order to create a “good bank”, the Third Bank of the United States. It could have been up to speed operationally by now; ready to accept the branches, deposits and viable assets of the soon-to-fail C and BAC.

The WSJ got around to discussing this possibility by the beginning of this year:
http://online.wsj.com/article/SB122757211390954799.html

Instead, we’re just wingin’ it, I guess.

By: effor

effor — Sun, 22 Feb 2009 20:53:05 +0000

VangelIV has it right. And of course most everyone will ignore what Austrians have to say because it doesn’t fit in with their Keynesian theories – and why anyone still thinks Keynes was onto something is beyond me.

For what it’s worth, I’m also against nationalization. In fact, I think the government should do nothing. If they had done that last year, we’d be in a deeper recession right now, but we’d be on the way back up. This death by a thousand cuts policy simply delays the inevitable and isn’t helping anyone.

http://www.effor.com/blog/index.php/2009/02/21/less-than-nothing

By: Cartman

Cartman — Sun, 22 Feb 2009 16:38:04 +0000

Re those opposed: Kudlow: anyone who has been listening to him for the last couple of years is probably in debtor’s prison by now, so he doesn’t count. But Bernanke, Obama, Geithner, Summers and Frank trump everyone on the pro list plus anyone else who might join the pro list. So unless and until they go from con to pro, it isn’t going to happen.

By: Mel

Mel — Sun, 22 Feb 2009 04:13:02 +0000

Yeah, I’d be interested in knowing where Volcker stands on this.

By: VangelV

VangelV — Sat, 21 Feb 2009 15:14:24 +0000

Ron Paul, Marc Faber, Jim Rogers, Peter Schiff and just about every member of the Austrian School of Economics is against. Of course, they are the people who saw the problem coming a long time ago and predicted the economic contraction, housing crash, derivative fiasco, etc., so I do not expect anyone to listen to them. Instead, the same idiotic ideas that created the problem will carry the day once again based on the justification of political expedience.

By: kristianson

kristianson — Sat, 21 Feb 2009 14:29:09 +0000

What about Paul Volcker? Does he want to Nationalize or not?

By: Marcus

Marcus — Sat, 21 Feb 2009 05:48:22 +0000

Barry,

Have you ever taken, or read about, a course in logic? [BR: Yes] Your long list of folk who have magically decided to nationalize the banks (aka turn everything over to bureaucracy and see what happens) is a brain dead idea. [BR: Its not a bureaucracy, its only temporary] Are you crazy? [BR: Yes]

If the King says a thing is true, it’s true. If the big-list majority says a thing is true, it must be true. Wrong. [BR: This isn't majority rules, it is all of the major proponents pro & con, with links to their well written, extensive arguments].

Your list only identifies hackneyed hobbits versus folks who are trying to get a big problem back on track, the economy. Don’t you question siding with Silligan Radigan and Easy Al Greenspan about policy and decision-making? Our banks are fine and will be around long after you and I are gone. [BR: Speaking of crazy . . . ]

You up take a moronic idea; “let’s kill the banks and see what happens”, (Yeh! Great idea. Why don’t we just self destruct in the middle of a crisis.).

I was shocked by your joining this group of dilatants. Add up the numbers.

1. When Wild Bill Clinton chided Obama this week to be more positive on the economy, read between the lines. That asshole is trying to preempt our leader and take credit for a market charge that is built into the recent overbought situation. It’s time to buy! (Sorry Bill. Your legacy is Monica, not as wizened advisor to the President.)

2. When Cramer joined thc cause and pushed for taking out the big banks, it’s time to buy banks. (Another self-serving ass who is seldom right).

1 +1 = 2 With Cramer and Clinton on the other side, you know you are right. Get into the market now.

When Citi closed at $1.95 Friday it was time to buy banks. I bought all day and will sell covered calls next week.

You’re on the wrong list Barry. Buy America today, banks, stocks and all.

~~~
BR: Your logic is impeccable, and your arguments most persuasive. On Monday, I will be bidding for 200,000 shares of Citigroup — or the equivalent of a small starter home on Long Island. Thank you for the investment advice.