America’s banks are being nationalized. Paulson’s bailout plan has been changed. Instead of buying toxic mortgages we are buying the banks. $250 billion are going to the banks in either shares of the bank or commercial paper. Major stable banks were voluntarily forced into being bought out. This plan is a result of plans in Europe. Now is the time of semi-free market capitalism.
What does this mean? In the short term the freeze on the banking crisis could stop. This is good, but the long term effects could be bad. What if the banks don’t re-privatize? Who is making money under the table? When will the system be permanently right instead of temporarily right?
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3 comments:
Well, it seems like now the financial sector is doing ok. I think if we bought mortgages back from homeowners it would be better. Going through the banks still just lines their pockets with money.
This has happened before in history, and all we have, as citizens of the faithful and great country of the United States of America, is our trust that things will be re- privatized.
I feel that in these modern times there should be less trust in the thoughts of re-privatization. Now we live in a time of multinational large companies. It is now easier than ever for a business deal to fall through the cracks. I think we should still be a little worried.
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