Friday, October 2, 2009

Can anyone explain the process of bank nationalization?

I don't understand the process of bank nationalization and why its so bad for the banks/shareholders/anyone else. Wouldn't it be good to take over the bank right now to fix this mess that they've landed themselves in? If anyone could explain this is semi simple terms for a semi beginner economist that would be great!


The government is secretly planning a scheme to control

us and this is one of their ways of doing so. This what i found out

money is debt”

Listen to what I have found out.

Money is created out of debt through loans based on banks reserves.

The government needs money and asks the federal reserves for money the fed reserves say yes sure but we need a promisary note to show that you will pay it back

The government makes up a bond which is just paper with monetary value stamped on it in dollar amounts added up to the amount borrowed. But how can the goverment pay something back if they borrowed the money becaue they did not have it to begin with. How can they pay it back??

Money does not exist!!!

Wow…its all about control and manipulation. Did you haer of the Federal REserves "Modern Money Mechanic"

Look it up

Bank nationalization is generally considered a bad thing, because they are then subject to government regulation, and thus gaining market value is difficult. It also subjects a significant portion of the nation's economy to the federal government's will...people don't like that either. And it's somewhat socialist in concept - people don't like the idea of Socialism.

If a bank really needs it, however, then they should be taken over to save the money its customers have invested.

It is a horrible, anti-American idea. If the government took over a bank, stock holders would lose their investment. The stock would become worthless. Government is the problem not the solution. Banks have bad loans because the government and special interest groups forced them to lend to people who could not pay.

The US government is incapable of fixing any mess. Look at Medicare, Medicaid, Social Security. These messes were created by our government.

My personal view is that it's a bad idea because it leaves the government in control of the banks. That's bad when you look at how "well" the government runs anything. How many government programs are actually efficient at utilizing taxpayer money? Government likes to often force the square peg into the round hole by saying "make it so" as though there are no consequences.

"Owners of capital will stimulate working class to buy more and more of expensive goods, houses and technology, pushing them to take more

and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be

nationalized, and State will have to take the road which will eventually lead to communism."

Karl Marx, 1867

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