Wednesday, February 18, 2009

This is Significant


One of the free market fundamentalists in the picture above now supports the nationalization of US banks.

(Hint: It's not the one who works in the white house)
Former U.S. Federal Reserve Chairman Alan Greenspan said on Tuesday that the global recession will "surely be the longest and deepest" since the 1930s, adding that the Obama administration's Troubled Asset Relief Program will be insufficient to plug the yawning financial gap.
. . .
"It may be necessary to temporarily nationalize some banks in order to facilitate a swift and orderly restructuring," he said. "I understand that once in a hundred years this is what you do." Nationalizations would "allow the government to transfer toxic assets to a bad bank without the problem of how to price them."
There's pretty much an across the board consensus that many of these banks are insolvent, and that the government will have to take them over.

It's only a question of how much time and money will be wasted waiting for ideologues like Summers and Geithner to come to terms with the facts.

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