Forum Post: Nationalization of the big banks?
Posted 13 years ago on Oct. 6, 2011, 7:01 p.m. EST by leftistperson
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Should the big banks, that already received trillions of dollars in bailout money, be taken over by the government? Is the nationalization of the big banks a good solution?
Some analysts say that the reason why Brazil was one of the first countries in the world to recover from the world crisis in 2009 was because the country has big government-owned banks, that helped boosting the economy out of the recession, and that are great instruments for social goals (even when those banks are profitable and didn't registered a single quarter of losses in the last 10 years.).
In the USA, the state of North Dakota is the only that has a state-owned bank. The bank is doing very well, with good profits, and as of September 2010, the state's unemployment rate was the lowest in the nation at 3.7% and it never touched 5 percent since 1987, the state with the nation's lowest unemployment rate.
Should all the big Wall Street banks become government-owned banks, having social goals, and a transparent management?
There are great banks all around the country. Most didn't take any money from the government, or were forced take small amounts of aid.
Nationalization would introduce many addition problems to our already tenuous economic situation. I personally don't think giving the Federal Govt full control of the banking system is the answer.
why would you trust the government to take over banks when they have put our nation 16.4 trillion in the hole?
It's not a matter of "trust" the government. It's a matter of putting social pressure on the government to force the government to do the right thing (the nationalization of the big banks, that should be put under a transparent administration).
I don't think you can look at it as an endemic problem with the banking system. Most banks play by the rules, take deposits, and make loans. The "too big to fail" banks are the problem. There is a disincentive to properly managing risk when you know you will get bailed out when you fail- you take huge risks. Good post!
I feel the issue is there is too little oversight of the banks and the banking systems. When banks were allowed to have investment arms, this split their focus on customers vs. Wall Street profits. We didn't learn anything from the Savings and Loan failures of the 80's.
Don't you think that the government should take over the big banks that received trillions in bailout money?
It would not be a nationalization of all banks. No. The small and regional private banks would continue to exist. Only the big ones, the "Too Big To Fail", like Bank of America, Citigroup, JP Morgan, Goldman Sachs, Bank of New York Mellon, Wells Fargo and some others. The banks that received bailout money. I think they should be taken over in a nationalization process.
"99% Skip Work Day"
On April 13th, 2012 we, the 99%, flex our muscles and show how strong we truly are.
The date itself has a couple storylines one can attach to it: 1. Friday the 13th 2. Last business day before tax day
Anyone behind me?
I am the 99%
By April next year these protests will probably be over, so I don't think playing hookey is going to get any points across. Also, if you're all worried about losing your jobs/not being paid enough, I don't think skipping out on work is going to help any of that.
Planning and gathering support for something like this could take months. 6 months will pass quicker than you might think.