by Joshua Holland
| Jan. 30, 2009
The painful but unavoidable reality of the financial crisis is that every dollar spent trying to prop up a failing bank is just good money thrown after bad; a taxpayer rip-off, short and sweet.
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Well written. Holland's best argument is that the current schemes of giving out free money to rich welfare bankers is not working, and we have to get them off the dole. The core problem of falling real estate prices is identified, but stopping the slide is not guaranteed. The econometric effects of nationalization are not fully analyzed here. The effect upon all the people and institutions that hold the bad debt instruments besides banks is not laid out.
If real estate prices are to be stabilized, we need more people with jobs.
Could we also subsidize starting new banks and credit unions and let the old criminal ones with bad loans fail?
This op-ed piece is a modest proposal. That is: bite the bullet and do what's necesary to save the planet and nationalize the banking system. But Republicans-- or Limbaughettes--who cannot grasp that Bushonomics failed big time and still ignore reality, hoping the socialization they started isn't real. Earth to Bushies: it is real, you failed. If we are to climb out of this depression, new approaches are needed. Not like the Republican 19th century Bushonomics which have have failed. so badly.
See Johnny run. See Republicans commit suicide. Exactly when did Lambuaghettes leave earth? What did Laughbaughettes fail to understand that their $700 billion bailout, with a quick $350 billion handout sans overshight failed? No Lambaughette seems to remember this quick bailout "solution" for their Wall Street buddies didn't work. Even their Wall Street pals are having trouble with reality.
One has to admire the range of this reporter. He has produced several excellent articles on Gaza recently. He seems to like the big ussues. As usual, he comes out full force for his position, supporting others who agree and being supported by them. Nationalization of the banks is a big and controversial issue, but after having seen what the House and Senate Republicans want to do about the financial crisis, it may be the only strategy that will work.
Nationalization should have been the first step to recovery from the real estate bubble burst. Bush and the Republicans were caught flatfooted, prefering to believe that if only they remained optimistic, everything would be OK. When that did n't happen, they panicked, and gave us the great bailout. It is unclear whether the new stimulus will help much, but if it doesn't we had all be prepared for a tidal wave of poverty in our own front yard.