nationalization of the banks

Feb 12, 2009 16:01

Can anyone point me to a cogent argument against nationalization of failing banks to shore up the financial sector?

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bunnybutt February 13 2009, 00:32:17 UTC
It's one step closer to socialism.

(said as if that's a bad thing).

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narbulwinj February 13 2009, 00:47:14 UTC
I guess what I mean is I want a well reasoned argument. Something that has some evidence to back it up.

My response to that argument in case you care is:

First, I see no reason why this leads to socialism - it didn't when we did it in the 80's during the Savings & Loan scandal. Nor did it change the level of socialism in Sweden when they did it. So I would want additional evidence to support the conclusion that somehow governmental purchases of common stock in banks leads to socialism.

Second, this seems mostly like a tautological argument. It's bad because it's bad.

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bunnybutt February 13 2009, 01:21:39 UTC

Yes, it's a tautological argument, because that's how americans have been taught to think over the last generation. Heaven help anyone who employs actual critical thinking skills, as opposed to just voicing the last criticism they heard on television or talk radio.

As a serious answer? I got nothing. I think it's probably the most direct way out of the mess that has been made, but I also don't know enough about how the system works to provide anything like a cogent analysis or argument. And, much like sausage, I'm not sure I want to learn anymore than I know about it.

If you seriously want an answer, I know a couple of economists who would likely have an opinion.

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narbulwinj February 13 2009, 02:08:18 UTC
well I read an economics blog and I check out other economics columns (admittedly the nytimes almost exclusively) but the blog has external links and such and I really do want to know if there's a reasonable argument against it. My reading of Obama's argument is "American's don't want it." which seems questionable since a lot of Americans would believe anything he told them.

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