Money – The US Federal Reserve is examining the Nordic bank nationalizations of the 1990s as a possible interim solution to the US financial crisis.
Sounds like a "pound of cure" solution to me. There is a middle ground between an almost complete lack of regulation and socialism. The Federal Reserve should maintain Greenspan's historic goal of minimizing inflation and leave the economic tinkering to others. Having the Fed assume such sweeping new roles is like driving a nail with a sledgehammer.
Actually the Fed needs to be sent backing. Their boom, or bust cycles are the problem not the cure.
You are confusing the effects of inflationary fiscal policies with monetary policy. It is extremely important to have the right person at the helm at the Fed, but his hands are tied if the Administration spends like the present one.
That is BS. If the Fed was abolished and we returned to the Gold standard, no one could spend like drunken sailors. Was his hands tied when he devalued the dollar by 20 Billion so that J.P. Morgan could buy Sterns, J. P. Morgan is one of the members on the board of the FED?
The only hands that are being tied are the tax payers. All spending including the budgets would be tied to the price of gold and silver and if congress would stop bending over, there wouldn't be any crises. You need to get a clue.
Seems to me like wishful thinking that the Fed would do anything with this much common sense associated with it.
There's noting sensible about the socialization of the financial industry. Maybe you would like banks as well-managed as the Medicaid or Social Security Programs.
The fact is, putting the economy into the hands of the Federal Reserve was an abdication of constitutional obligation and authority to begin with.
The foxes have been guarding the henhouse for decades. Maybe it's time to change that.
I just wish we had a leader in whom we could have some confidence that the results would have any effect other than increasing the gap between rich and poor. I full expect Bush to give more to the foxes and less to the chickens. It's what he does best.
The Federal Reserve was meant to operate apart from political influence, to allow monetary policies based on economic efficiency, not political expediency. This works great with someone like Greenspan, who had the clear goal of controlling inflation. Political interference tends to lead to pro-cyclical economic policies.
Greenspan tried to cure one bubble with another, then got out before it blew up on his face. Now he's told the Financial Times he's investing in non-U.S. economies.
That's just what we need. More free marketeers who manipulate domestic markets and protect their own investments by sending their personal money overseas. Way to go, Al.
Miau... I am worried about a different aspect of things; the stack market became the "casino of habitual gamblers" and the temple of financial sickos. Now I hear that president Bush is considering introducing new laws by which the Federal Bank is going to become a slaves to the stack market, and will have the duty to support them by any means. The separation of church and state is a law, but why isn't the separation of banks and stack market a law ? The stack market is nothing but AIR (blue skies !), should the foundation of finances (!), the banks, become such too ?
I would separate them, and kick out of government anyone who is directly or indirectly associated with the stack market, (they are all habitual gamblers !) and this would include even the janitors. Let the "casino" reflect what's going on, or you will loose it all ! You can't gamble with my tax money !!!!
"The separation of church and state is a law..."
That was the first one Bush ignored. Literally hundreds have followed. But you need not take my word for it, just check the 840 signing statements from this little weasel. He is the most lawbreaking president since Nixon.
This should come as no surprise from the man who created and tanked Arbusto Oil, then sold the bankrupt company to the Bin Laden family for personal profit...the man who fleeced Arlington taxpayers to build a stadium for a team that left so he could make $17 million on that deal.
Bush's idea of fiscal responsibility is privatizing profits and socializing losses.
"The separation of church and state is a law..."
That was the first one Bush ignored. Literally hundreds have followed. But you need not take my word for it, just check the 840 signing statements from this little weasel. He is the most lawbreaking president since Nixon.
This should come as no surprise from the man who created and tanked Arbusto Oil, then sold the bankrupt company to the Bin Laden family for personal profit...the man who fleeced Arlington taxpayers to build a stadium for a team that left so he could make $17 million on that deal.
Bush's idea of fiscal responsibility is privatizing profits and socializing losses.
Couple of observations.
I believe the Federal Reserve to be a private for profit institution. I find it interesting that they should be in a position to nationalize anything.
At one time the Social Security Program was the overseer of a very high value cash and securities assets. For a long time, various administrations have borrowed from them, issuing iou's. It is a well managed program, forced to do without the cash it once had, and witout any chance of calling in the iou's it holds.
That two countries, noted for their socialistic societies, to implement a rescue plan where the owners do not receive any bail out is admirable. That a country noted for being a capitalistic conservative society, is bailing out the owners of a failed bussiness says volumes. As Berkeley noted above. Which countries are the real conservatives, and which ones are the real socialistic ones? Just food for thought......
I can't agree with socializing banks. It's better known as stealing. Adequate regulation of the financial industry does not require a switch to Marxist economic policies. The two countries being discussed do not operate on the economic scale of the U.S. or have the impact on the international financial markets that the U.S. does. Their experience is not necessarily something we want to copy.
I agree that the answer isn't in socialising for profit anything, yet, we repeatedly "bail" out for profit economic institutions, often saving investors not only their capital, but also accumulated profit. In the pure sense of the word, this "IS" socialism. Just because it doesn't favor the little guy, doesn't mean it isn't "socialism".
There are several rules and laws that were put in place for specific reasons. We have been dismantling many of these, and in the current "laissez faire" athmosphere, we have ourselves to blame for the near chaos in the current economic climate.
One of the things people don't seem to grasp, is that we cannot maintain a vibrant and expanding economy based on service industry wage scales. We need industry back into the country, or our slide to a quasi banana republic will become just about inevitable.
On the two countries mentioned, yes their economy is far from the scale of ours, yet, their citizens live on average as well or better than we do. Maybe scale isn't all that it has been advertised to be, if coupled with smarts.
We may not want to copy their experience, at least most of it, we need our own way. That said, why are we desperatly trying to export our way to others that feel that they aren't confortable with our ways?
Seems to me that our culture is appealing to many others and they choose to adopt our ways regardless of what they say. As for the thinly-veiled Iraq War reference, I don't believe that "informed" people prefer tyrannical dictators or religious governments to democratic governments for the same reason that any "informed" individuals would choose slavery over freedom. The problem is that much of the Middle East is poorly-informed by the government-controlled media and poorly-educated.
Agreed. Free market seems to adopt what people like. Hence the cultural diversity present in our own marketplace. We adopt what we like, and discard the rest, as does many countries in their own way. That proves that there are a lot of great things in all countries that people agree on.
I do believe you hit the head on the nail when you said "informed" individuals. We can probably discuss that back and forth for a while, but I sense you have your opinion, and I have mine. I respectably agree to disagree with you.
Oh, by the way, I wasn't thinking on the war, I was thinking in economic terms, but you assumed otherwise. There are other things that matter greatly, if not more than the war. Our attention is kind of directed that way, isn't it?.
Hey, have a great day Drop, I have some action I got attend to, rather than discussions. Maybe tonight I can find some time.
This may come as a surprise to most Americans. The Federal Reserve is NOT an agency of the US.The Fed is a banking cartel of national and international bankers.They loan money everyday to the treasury with interest. The dollar is a promissary note. It has no value and is based totally on trust.The Fed holds our gold as collateral and the American citizens as assets. The Fed takes its marching orders from the ITO.
Friday, the Sec. of Treas. proposed handing over (outsourcing)the duties of the Treasury to an international group of bankers, the Fed. In essence our SOVEREIGHNTY to control the economy of this country will be transfered completely to outside interests we do not control.
This is backwards. The Fed policies that the US has gone along with , has caused this inflatinary recession mess.
When economists look back at this time, they will call it the time of plundering of the American treasury and people.
It seems like the federal reserve may have set us on track for this nationalization to become inevitable. I know I don't have access to all of the numbers, but:
if you consider the liquid capital of the banks; their short-term liabilities; and the fact that many of the assets they hold are rapidly declining in value (mortgages, dollars)
then it seems very unlikely that the banks will be able to repay their debts to the federal reserve. This was of course, set up so that "we could save the system."
But see, if the Federal Reserve "nationalizes" the banks, it won't really be nationalized. It would be put under a partially private system dominated by a few key banks.
The history, the conspiracy, it all kind of points to a bad deal for the American people.
http://beam.to/federal-reserve
Remember the federal reserve next time you're at the grocery store or gas station. They're at least partially responsible for prices
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Priceless, the GOP elected a socialist administration...
That's not what we elected, but it's what we got.
..."one of the INTENDED consequences of this plan would eliminate the teachers unions and perhaps the entire PRUBLIK SCHROOLS system.
well why not? is it not clear by the comments posted in this thread that these parasites are utterly failing us?"...
YES! Like energy and food, clean air and water, education is far too valuable a commodity to be providing for free. We've been working for years and spending millions in campaign donations to GOP people to instll a Federal voucher system. This bankrupts public schools, breaks the teachers unions, and makes free and public schools so horrible that EVERYONE who we choose to ACCEPT will flock to our profit making schools! Public schools get stuck with all the messed up kids in budget-busting Federallly mandated, but never funded special ed. plans while we skim off the cream.
No matter how high test scores continue to rise, we media blitz just the opposite, as we have been successfully doing.
"Those people" will still have public schools, and the rest of us will gladly pay for our kids NOT to have to attend them. Being private, our schools never have to do all that stupid NCLB testing, and we'll tout how fantastic we are with no evidence to the contrary.
Churches are, and have been solidly behind this "voucher movement" for years now. They'd be fools not to! It will be drummed from every pulpit all over America more and more as elections approach. The church schools will receive even more "faith based" govt. grant money as well as their regular tuition. Corporate owned schools, not having to comply with all the Federal regulations, will turn handsome profits, indeed. Nation wide, the profits will be in the billions.
Bottom line? Get rid of those failed public school unionized parasites who are responsible for all the ills of society! Make huge money selling something that Americans now get for free!
Richfatcat - Are you sure you are not Goppy w/o the fake hick Appalachian accent?
Free? Have you paid your property taxes lately? The latest data indicates that less than half of inner city high school students in larger cities across the country are graduating. Sounds like we aren't getting much for our tax money with the alarming growth in dropout rates.
Thanks for the lecture, but with "free markets" what's to stop a factory from dumping benzine upstream from me in a river.
Nothing.
Not to mention the pooling of capital into too few hands resulting in a monopoly power.
Unfettered capitalism and markets are simply a bad idea.
Too good to be true! Oh, yes, this could be a sweet deal, indeed.
We "sell" our banks to the Fed who would certainly pay top dollar for most of our looted institutions. It's not "real" money to the taxpayers since it just gets added to the national debt. (The ultimate credit card) Fortunately, most Americans have forgotten how we, with the help of Charles Keating, pulled this same deal with savings and loans back in the 80's with our man Ronnie at the helm. Taxpayers made us very rich. Busted that damn Air Traffic Controllers Union, too! Iraq proves they've forgotten Viet Nam, too.
After some regulations are put back in effect, the banks are solvent and profitable again and we scream for privatization and the government sells the now solvent banks back to us at pennies on the dollar. Socialism is BAD!
We net billions, maybe even trillions on both ends. Bring it on!
George Bush, you have been worth every penny we spent to get you elected!
It's as though you are the result of Neil Cavuto and Goppy going through The Fly's teleporter.
Yes!
Actually corporate fascists were installed by the Supreme Court in 2000. Vote fraud and caging reinstated them in 2004. These people are criminals.
Anyone familiar with the Constitution recognizes the key role that the Framers placed on property rights. This differentiates the U.S. from the Scandanavian countries in question. I believe that this move would be an unconstitutional seizure of private property. If this happens, I'll have to become a more outspoken critic of the President. If anyone...anyone...accuses G.W. Bush of being a Conservative and accuses me of being in league with him after this, they won't have a leg to stand on!