[kaylasmom]

What would the ramifications be?
Wasn’t sure where to post this question.

[mattduke]

I don't see how that is possible given that our new administration has declared he would abide by the Consitution. Banks are private property you know.

{topic moved from Current Events by Shannymara}

[basil_hayden]

An incredibly large federal tax rate increase for the stupid 43% of us that pay taxes.

[Keith_McClary]

$this->bbcode_second_pass_quote('kaylasmom', 'W')hat would the ramifications be?
Wasn’t sure where to post this question.

[uNkNowN ElEmEnt]

If they used the 1990 Sweden example, it could bring about the opportunity of getting out of this mess in a few years. But knowing how the banksters run the whitehouse, I think its unlikely that they would ever have a chance of pulling it off in a non corrupt way.

The basic idea is that by nationalizing the banks you use the taxpayer and the might of the nation to prop up your money. The shareholders would stop getting dividends until the whole thing was fixed and the banks returned to their actual "owners". and the profits in the intervening eyars would go to paying off things like the bad mortgages and fanny mae etc.

There would ahve to be systemic changes.

Other things (like the production of goods) would have to be nationalized as well. it would in effect become (for a few years) an economic communist state.

They would have to stop artificially inflating GDP and stop adding things like productivity (as opposed to production) into the numbers. They would have to get a lot honest in their numbers reporting and they would have to start shifting the economy to more of a produce as opposed to service based economy.

this would also present other issues. like trade. with a dollar undergoing hyperinflation it would be harder to get the resources needed domestically to produce everything the country needs, which would mean you'd get slaughtered when you tried to trade for other materials or goods.

of course you also have the political side of things, how is China going to stand by while you nationalize all your production, when you owe them trillions and won't use what you do have to buy their cheap crap.

it would be a fascintating idea, and simply awesome to watch. but.... the chances of it happening...? sure sure.

[Keith_McClary]

Nationalization Gets a New, Serious Look (NY Times)

$this->bbcode_second_pass_quote('', ' ')Moreover, cleaning up the banks’ bad assets, without extracting a heavy price for the bank managers, shareholders and their lenders, is exactly what Mr. Summers and Mr. Geithner warned against during the Asian financial crisis.

“We told the Asians that they had to be willing to let banks and companies fail,” said Jeffrey Garten, a professor at the Yale School of Management and a top official in the Clinton administration. “We warned that there was great moral hazard if governments just bailed them out.”

“And now,” he said, “we are doing the polar opposite of our advice.”