GOP Sen. Graham Opens Door To Bank Nationalization "This idea of nationalizing banks is not comfortable, but I think we have gotten so many toxic assets spread throughout the banking and financial community throughout the world that we're going to have to do something that no one ever envisioned a year ago, no one likes," Graham said. "But, to me, banking and housing are the root cause of this problem. And I'm very much afraid that any program to salvage the bank is going to require the government.."
Analysts say that speaks to the depth of the nation's financial crisis, and to President Obama's ability to maneuver broadly to combat it.
But some prominent economists, including Nobel prize winner Paul Krugman, say nationalization is the only way out of the out of the current financial crisis, given that the nation's largest banks are now carrying a crushing half a trillion dollars in bad debt.
"The chances of your being able to do this without nationalizing at least a couple of really troubled banks are not too good," Krugman told ABC.
This week, as part of Obama's plan, the nation's banks will start to undergo what are being called "stress tests" to find out just how much trouble they are in. When those results are in, Krugman says, federal officials will have only once choice.
1 comment:
Graham is now the comdey act and he should play two face in the next Batman movie. Without the Republicans running the White House these Republican Law Makers are seen for the idiot they trutly are. Boner Boy is always crying and now Eric Cantor thinks he should be President because he looks young. What's with these people. Cantor says he has the Values and intellgance the American people need now while he sends out a tape against the Unions that have him cursing with bad language as he sends his spoke person out to apologize. Grahma is fighting tooth and nail against the Stimulus Package but what his share of the money. Boner says no one read the Stimulus Package but if Obama gave a 1 million dollar bonus to those who did I bet Boner would have read it. McConnell is more worried about this wife Elaine Chao going to jail for her crimes so the last thing on his mine is the Kentucky voters.
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