NATIONALIZATION, AT LAST!

AND NOW PLEASE FIRE THE INCOMPETENT, AND, OR, CORRUPT MANAGERS.
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In a belated, but significant philosophical shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout funds further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock.

I advocated this approach an eternity ago, last September: http://patriceayme.wordpress.com/2008/09/30/to-get-leverage-nationalize/

I am happy to see that rationality is at last reaching the White House, the Summers of our discontent.

By the way, all and any of the opponents of this nationalizing approach use arguments which can, each, one by one, be completely destroyed. I literally do not know ONE argument of the opponents of nationalization that is valid in any sense. In particular the difference between "public" and 'private" is laughable. The whole problem was precisely that the later owned the former, a contradiction of the republican constitution ("We The People...")

The financial disaster was set up by what has been dubbed "Government Sachs", the reigning plutocracy. By definition the private sector, at that point, had become the government. It sucked up all the money, or nearly so, to itself. Then it proceeded to lose most of it. Then it turned to the taxpayers, and the public, and ordered them to fork over more money, and be deprived of basic services, or else... This is of course intolerable, and it's high time that those of these crooks that deserve to go to jail join Madoff in the slammer.

Now the taxpayers and the public will be more willing to work to reestablish the riches, since they are becoming the owners. They will work even better that way, and for themselves. Capitalism, the free market, work for riches at its best. Oh, by the wy, let's not forget to put honest, capable, transparent managers at the top of the nationalized institutions. We want the best. Off with the old plutocracy!
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Patrice Ayme
http://patriceayme.wordpress.com