Tuesday, February 24, 2009

Update on the government's state of denial: Improving

From Clusterstock:

"
US Finally Admits It May Have To Take Over Banks

barack-obama-thumbsup_tbi.jpgUpdate on the government's state of denial: Improving!

NYT: “We absolutely believe that our private banking system is best off being in private hands and we are trying our best to keep it that way,” said one senior administration official, who spoke on condition of anonymity. But, he continued, the government is already deeply involved in propping up the banking system and may have no choice.

Officials said they were bracing for the possibility of new problems that might indeed require the government to take a more aggressive stance.

Given our involvement at this particular stage, there is an element, a possibility over time, that we will end up with some ownership of these institutions,” the official said. “This is really about aggressive anticipatory action. It is an acceptance that the future is uncertain, but that we can plan on a certain basis for it.”

(The rest of the article, meanwhile, is too depressing to read. Among other things, it contemplates what the government will do once it actually takes over all these companies.)"

Me:

Don the libertarian Democrat (URL) said:
“They are desperate to not nationalize the banks,” said Robert J. Barbera, chief economist at ITG. “They know what happened when they took Iraq and they would just as soon not take over the banks, because if you own it, you gotta fix it.”

I hate to tell Mr. Barbera this, but it's our country, and we do have to fix it. This is the second "Can Do" American Spirit post of the morning. Maybe I'll start collecting them, for a wreath.

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