Wednesday, February 18, 2009
Current Event - Nick Maestranzi (Week #5)
This clip is about the Financial / Banking Bailout (TARP) possibly nationalizing the U.S banks. Representative Waters & Senator Lindsey Graham both agree that Nationalization is a possibility and even talk about what President Obama thinks that is not necessary to do that yet.
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ReplyDeleteNick,
ReplyDeleteI think this is a great event to bring up. Personally, I agree with the economists, who include nobel prize-winning economist Tim Krugman, that nationalization is the best bet. Krugman obviously is a credible source when it comes to such an issue and for him to say that nationalization is what we need I completely agree. It seems logical that things are getting worse and that nationalization is going to make things better, but only time will tell. Here is some more information regarding the topic that I found including the bit about Krugman:
http://news.yahoo.com/s/ynews/20090218/pl_ynews/ynews_pl246
I think that the nationalization of the banks is a good plan because it will restore peoples trust and promote spending/investing.
ReplyDeleteAnything to take the power away from the banks who may lavishly spend the bailout money on something totally unnecessary is a good thing. So i have to agree to nationalization.
ReplyDeleteThe banking system in the United States is not completely broken. The problems we now have are mostly the result of poor/limited oversight of financial institutions and a lack of transparency - these can be fixed through legislation. If nationalization is necessary, it should be temporary. Our political system is very different from those in Europe, their solutions will not be the same as ours.
ReplyDeleteObviously, nationalization is not a particularly good option. However, since the administration spent $75 billion on mortgages, leaving only $275 billion left in the TARP fund, it seems somewhat likely. It's doubtful Congress will approve more money similar to TARP, and $275 billion may not be enough to keep the banks solvent through the year.
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