Real Estate Investor · Georgetown, MA · Member since 2008 · 250 posts · 6 votes
So there has been a lot of talk lately about nationalizing some of these big banks. The govt then came out and said its not going to happen and they have no plans to take such action.
I was just watching a local news station with a panel of economists and a few of them agreed saying "in 18 months we the people are going to own several of the nations biggest banks." They don't agree with the action but they say it is inevitable.
If this case what really happens in this situation? Why is it bad, why is it good? I understand the process but don't understand the long term effect.
Obviously any shareholders of these banks will be totally screwed and their shares will be essentially worth nothing. The stock market will also take huge hits when/if a bank is purchased by the Govt.
Is it just the fact that people don't like the control and regulations the government could impose once they take these banks over? What is the biggest draw back?
In 8 short years, the government could control at least 2 major industries:
1. Banks: Full control of your money.
2. Health Care: Full Access to your Medical Records
I am not an expert, and could be wrong here, but I feel this alone could make privacy laws next to impossible to maintain. I feel it is giving the government too much power, getting closer to the point of absolute power. (and we know that absolute power corrupts absolutely.)
What I think a lot of people miss in all of this is:
There is a big difference between government regulation and government control.
We have seen our basic rights compromised by using fear as a tool to "bait and Switch" during the War and Terror.......We are now seeing the same tactics used with the Economic Crisis.
We are also seeing more signs of a stronger federal control of our local governments.
There seems to be a lot of language in the stimulus bill that forces the local officials to do things that they might not want to do if they take this money. The federal side is smart, as they know it could be political suicide for local officials question them.
Charlie Gasparino (sp) from CNBC said that from a Citibank source a deal with the government will be done later today or tomorrow to take a 40% stake in the company.
It may not be complete nationalization but its a major step toward it. If this is true by Wednesday the government will be the majority control of the U.S.'s biggest bank.
1. Banks: Full control of your money.
2. Health Care: Full Access to your Medical Records
Nationalized Banks = Government FULL control of your money & TOO much influence on the lawmakers.
We are already headed toward socialize medicine which means some suit behind a desk will have the final say in what treatments you will be allowed to receive. You will no longer be a person, just a case number.
If you need reference to how well our national health care system would run, just look at medicare....need i say more? :roll: I would personally like to decide if i get treatment or not, ME or my family, not Uncle Sam.