Saturday, November 6, 2010

Nationalize the Too-Big-To-Fails!

Ellen Wood argues that bank nationalization is looking better and better as the too-big-to fail banks appear ever-more insolvent due to the fraudulent securities based in home loans whose chains of title were violated by lack of proper signatures and authentication.
http://www.globalresearch.ca/index.php?context=va&aid=21793

If the too-big-to-fail banks were nationalized and the assets sorted and sold, our economy might be able to halt this deflationary spiral because mortgage debts could be written down by the federal government and small businesses might be able to raise credit again (I know first hand how hard it has been for small businesses to get loans).

Instead of this rational strategy, we get QE2. Quantitative Easing 2 seems aimed exclusively at the banks. They will take their free money and buy treasuries, forcing the government to pay interest. They will inflate the stock market and/or engage in currency speculation abroad.

If the government aims to stimulate the economy, it should develop meaningful public works and infrastructure projects. Giving more money to the fundamentally corrupted too-big-to-fail banks is not going to help produce jobs or assist small businesses.

The government should also attempt to reign in monopoly capitalism, which hurts producers and consumers alike. See Cornered by Barry Lynn
http://www.amazon.com/Cornered-Monopoly-Capitalism-Economics-Destruction/dp/0470186380

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.