No Bank Nationalization! No!
First let us review a very recent history of all major media and academics about the Iraq War. Under former vise-president Cheney and his assistant cunningly manipulated of the fake WMD theory. 99.9% of major media which include NYT, WSJ, CNBC, ABC, NBC, CBS, FOX, WASHINGINTON POST and almost all political PUNDITS…YOU NAME IT!! And Academics like Francis Fukuyama all unconditionally support and shout: WAR! WAR! IRAQ WAR! Same as the VIAGRA-INJECTED and Fox’s Bill O’ Reilly and Rush Limburg. That is why Bigthink Jimmy Huntington called this era as the Darkest age of Journalism.
Because they lost the independent analysis capacity and they subjectedly and selectively report to the Reader. We had gone deeply into an unnecessary War. And because the astronomical spending In Iraq and doing nothing in our research, educational, industry…. etc., in Bush’s eight year. WE RESULT IN UNPRECEDENTED RECESSION!
To the worst, the Lawmaker of Bush! (No kidding!) unbelievably, 99% the Congressmen and Congresswomen support the Iraq War! They all became the “private Law maker of President Bush” during the years of Bush’s Administration.
NOW THIS AGAIN! MAJOR MEDIA, NYT, FINANCE CELEBRITY ALAN GREENSPAN, Congressmen Lindsey Graham, Chris Dodd and Charles Schumer, Academics, Paul Krugman (It is strange Greenspan and Paul become Bank Nationalization Buddy!) all support Bank nationalization. However, I do not see any of them to do and had done a deep research and published a decent paper about Bank Nationalization. They support, a lot of sense based on their "feeling" or redemption. We may conclude that NYT, Lindsey Graham, Chris Dodd, Charles Schumer, Alan Greenspan have all failed this country once before. How can we believe this time they are right on bank nationalization? No proof. Only shouting again: Bank nationalization! Bank Nationalization! Just like War! War! Iraq War! In 2003, no difference!
Readers let me remind you the fact, when the Sweden Government temporarily nationalize bank in 1990s (According to former Chief of FDIC, William M. Isaac wrote on WSJ on Feb 24, 09, Sweden only nationalized Gota Bank and that was after it had already collapsed!) Sweden was in no recession. Their bank is not as big and internationalized as Bank of America or City. And their Sweden Bank at crisis is not in Tier 1 ratio of capital as City and BAC or Wells Fargo! I am 100% SURE MOST OF THE BIG BANKS IN US ARE SRTONG AS OTHERS AROUND IN THE WORLD. Who said JP Morgan Chase Bank is no match to The Hong Kong and Shanghai Banking Corporation (HBC) in terms of ratio capital and international status? But I do admit there is some small banks are in dire strait needed to be clean out. The “Stress test” will tell!
But why after the injection of Government billions of Taxpayers money and guarantee it did not help the market? To my humble opinion, the house price and foreclosure are not stable. City is holding a lot of the CDO, CDS AND SYNTHETIC CDO WHICH ARE LINK WITH FORECLOSURE AND THE HOUSE PRICE! The root of problem is in property market. To shoot the Bank, it only wastes your bullet.
Another reason is that, greedy and ruthless Bank CEOs use the “wait, kill and expand” strategy. A strong capital banks of course like to see their opponent bank gone broke in this crisis! That can explain why after Government injection the Big Banks lend less! I do not blame the greedy and ruthless Bank CEO. Look what Bill Gates did in his era in Microsoft! If you are soft and kindness you should change job as CEO of Bill Gates Foundation for philanthropy only!
Let me change a bit and rephrase Keynes’ writing as my conclusion: “A sound decision maker (Keynes used “Banker” I change decision maker), alas, is not one who foresees danger and avoid it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him. Outlandish bonuses amplified and rewarded that herd behavior”
NOW WE ARE IN CRITICAL MONMET, Mr. Tim Geithner do you want to follow the herd behavior of Alan Greenspan, Paul Krugman, NYT, nationalize Bank?
My God! I feel the great pressure! “Greenspan team up with Paul! Man!” You should! Mr.Geithner!
God Bless America, no Bank Nationalization!
Rewrote on Feb 24, 09.