[Vision2020] USSA: Nationalizing Banks To Rescue Global Economy

[lfalen]

I was worried about Obama leading us into Socialism. It looks like Bush and congress beat him to it.
Roger
-----Original message-----
From: "Ted Moffett" starbliss at gmail.com
Date: Tue, 14 Oct 2008 11:25:12 -0700
To: vision2020 vision2020 at moscow.com
Subject: [Vision2020] USSA: Nationalizing Banks To Rescue Global Economy

> I heard a joke on Radio Australia about the USSA (United Socialist States of
> America), regarding the nationalizing of US banks now under way:
> 
> http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2008/10/11/MNP413EVF4.DTL
> 
> *(10-11) 04:00 PDT Washington -* -- Treasury Secretary Henry Paulson, acting
> with finance ministers from the Group of Seven industrialized nations,
> Friday said the government will buy direct stakes in banks to stem a global
> financial collapse, as it became clear that his original $700 billion
> rescue, passed by Congress just last week, was not working.
> 
> "The current situation calls for urgent and exceptional action," said the
> G-7 ministers, which include Paulson's counterparts in Japan, Germany,
> Britain, France, Italy and Canada. They outlined a five-point plan that also
> would insure all deposits and use "all available tools to support
> systemically important financial institutions and prevent their failure."
> 
> The ministers will meet this weekend and markets will be expecting flesh to
> be added to the still-vague plan. Still, for the United States, the action
> would be the first time the government has bought stakes in banks since the
> Great Depression. The G-7's aim is to coordinate a much more powerful global
> intervention to stem the banking panic and forestall a deep economic
> contraction.
> 
> ---------------
> The government would end up partially owning some banks that are unable to
> muster private investors. Others, Paulson said, would be allowed to fail. It
> will take weeks after the emergency intervention to sort out which banks can
> be saved, how the taxpayer stakes will be structured, and with what strings
> attached.
> 
> "They have no choice," said an economist at a major government institution
> not permitted to speak on the record, but who has analyzed the banking
> problem for more than a year. "You're about to have a generalized depositor
> run. They have to come in and recapitalize the banks and guarantee all
> deposits."
> ------------------------------------------
> Vision2020 Post: Ted Moffett
> 
>