Real Bipartisanship: Waters and Graham for Nationalizing Banks.
by art3, Sun Feb 15, 2009 at 01:43:17 PM EST
Hmm-is real bipartisanship taking root? to nationalize the banks? Looks like it. Sen Graham and Rep Waters appear onthe same page-nationlize the banks to make them lend to the people, etc.. Moreover front page stories in the NYT and WaPo on the banks and the Swede policy are pushing this notion into the mainstream. Time for Geithner, Schumer and the rest to get on board. Krugman says its cheaper this way than spending trillions to attempt to keep bans private. This is bipartisanship dont mind seeing.
Once radical, nationalization attracts GOP support
By Mike Soraghan
Posted: 02/15/09 05:05 PM [ET]
Rep. Maxine Waters was lambasted as a left-wing radical last year when she raised the idea of nationalizing the oil industry. But on a Sunday morning talk show, a Republican senator came off even more supportive than her of nationalizing banks.
"I would not take off the idea of nationalizing the banks," Sen. Lindsey Graham (R-S.C.), said on ABC's "This Week with George Stephanopoulos."
Graham, a confidant of former Republican presidential nominee Sen. John McCain (Ariz.), said that the problems in the economy and the financial sector are so severe that U.S. policy makers may have to start thinking about things once labeled unthinkable.
"This idea of nationalizing banks is not comfortable," said Graham, appearing downcast. "But I think we have gotten so many toxic assets spread throughout the banking and financial community throughout the world that we're going to have to do something that no one ever envisioned a year ago, no one likes."
"I would not be for nationalizing," Schumer said. "I think government's not good at making these decisions as to who gets loans and how this happens."
The prospect, though, was raised by two New Yorkers who are free-market economists. Matthew Richardson and Nouriel Roubini, professors at New York University's Stern School of Business, penned an op-ed in Sunday's Washington Post entitled "Nationalize the banks! We're all Swedes Now."
"We feel downright blasphemous proposing an all-out government takeover of the banking system," they wrote. "But the U.S. financial system has reached such a dangerous tipping point that little choice remains."
Many other economists have also suggested nationalizing banks. So much so that as he rolled out his broad strategy for dealing with the troubled financial sector last week, Treasury Secretary Timothy Geithner found himself discouraging speculation that the federal government might nationalize banks.
http://thehill.com/leading-the-news/once -radical-nationalization-attracts-gop-su pport-2009-02-15.html