Spring Break
Nationalizing banks won't fix money problems
Megan Lynch
Issue date: 1/28/09 Section: Commentary
President Obama seems to have survived his first week in office with little trouble, but it doesn't seem like this good fortune will continue, at least not with the Republicans or me. With the obvious economic troubles looming before him, the nation is waiting for their answers and billions promised in stimulus checks. However, Obama's cure for Wall Street's scars may not turn out to be as great as expected. I don't think many Americans planned to welcome socialism alongside the first black president.
Socialist fingers have already been pointed at Obama during the election, and now in the Oval Office he is planning the nationalization of America's banks. Sounds a bit socialist to me. But if you ask any of Obama's staff or House Speaker Nancy Pelosi, their plan can hardly be described as nationalization. She is quoted in a New York Times article saying that they are "not talking total ownership" after she brushed off the term nationalization by saying, "well, whatever you want to call it."
The reason the Obama administration gives for nationalization is simply to pull the banks and other financial institutions out of this gigantic hole. If the government takes over, they can fire unfit management and run the banks in a responsible manner during this crucial time. They have never admitted to trying to gain full ownership of all the banks, only a "large minority," which of course does not sound anything like an oxymoron to Obama's officials - but I beg to differ.
If the government gains control of any sizable portion of America's financial institutions, when will the banks be "ready" to run themselves again? How will any federal officials have enough objectivity to decide when the economic situation is back on track? Obama plans to fire all the current management in these institutions because they have failed with the rest of the economy, which is not the answer at all. Many, many Americans had a hand in the economic crisis. It wasn't just Wall Street, or the big greedy businesses, or the irresponsible homebuyers, it was all of us, including Obama and every member of his cabinet.
Socialist fingers have already been pointed at Obama during the election, and now in the Oval Office he is planning the nationalization of America's banks. Sounds a bit socialist to me. But if you ask any of Obama's staff or House Speaker Nancy Pelosi, their plan can hardly be described as nationalization. She is quoted in a New York Times article saying that they are "not talking total ownership" after she brushed off the term nationalization by saying, "well, whatever you want to call it."
The reason the Obama administration gives for nationalization is simply to pull the banks and other financial institutions out of this gigantic hole. If the government takes over, they can fire unfit management and run the banks in a responsible manner during this crucial time. They have never admitted to trying to gain full ownership of all the banks, only a "large minority," which of course does not sound anything like an oxymoron to Obama's officials - but I beg to differ.
If the government gains control of any sizable portion of America's financial institutions, when will the banks be "ready" to run themselves again? How will any federal officials have enough objectivity to decide when the economic situation is back on track? Obama plans to fire all the current management in these institutions because they have failed with the rest of the economy, which is not the answer at all. Many, many Americans had a hand in the economic crisis. It wasn't just Wall Street, or the big greedy businesses, or the irresponsible homebuyers, it was all of us, including Obama and every member of his cabinet.
Viewing Comments 1 - 3 of 3
Frank
posted 1/28/09 @ 5:05 PM EST
Criticism is easy. Where's an alternative solution?
Presumably the banks should be allowed to fold? And with the, the nation's economic infrastructure?
JoeC
posted 1/29/09 @ 4:04 AM EST
Well, well, the Daily Campus is really stocked with a gaggle of right wing ducks.
Frank hit it right on the head, Megan. In your wacky right wing world, there should be no government intervention and the banks, complicit in fraud, excesses, and just bad fiscal practices, should be allowed to fail. (Continued…)
JoeC
posted 1/29/09 @ 4:09 AM EST
Let me make a correction to a typographical error. It is "universities", not "univesities".
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