Daily Dose: Nationalize the Too Big to Fail Banks?

Of course, the real issue in front of us right now remains whether or not to nationalize the worst of the Too Big to Fail Banks.  As reported in the NY Times, Geithner’s “stress testing” is already starting as regulators have descended on Citigroup, BofA, and others.  Nationalization may be one of the outcomes.  Until this issue is resolved the markets will remain on edge.

As Martin Wolf says in the Financial Times,

The correct advice remains the one the US gave the Japanese and others during the 1990s: admit reality, restructure banks and, above all, slay zombie institutions at once.

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One response to “Daily Dose: Nationalize the Too Big to Fail Banks?

  1. “Everything” traded between registered firms should be registered and cleared on a regulated exchange! No exceptions. We have evolved into the massive institutions through the consolidation of the 90’s, now we must monitor their every move! How can we allow firms of that magnitude to create and exchange for sale securities that no one outside the transaction fully understands?

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