Archive for the ‘nationalization’ Category

Obama Gives Nationalization of Banks a Serious Look

January 26, 2009

Only five days into the Obama presidency, members of the new administration and Democratic leaders in Congress are already dancing around one of the most politically delicate questions about the financial bailout: Is the president prepared to nationalize a huge swath of the nation’s banking system?

By Davide E. Sanger
The New York Times

Privately, most members of the Obama economic team concede that the rapid deterioration of the country’s biggest banks, notably Bank of America and Citigroup, is bound to require far larger investments of taxpayer money, atop the more than $300 billion of taxpayer money already poured into those two financial institutions and hundreds of others.

But if hundreds of billions of dollars of new investment is needed to shore up those banks, and perhaps their competitors, what do taxpayers get in return? And how do the risks escalate as government’s role expands from a few bailouts to control over a vast portion of the financial sector of the world’s largest economy?

Read the rest:
http://www.nytimes.com/2009/01/26
/business/economy/26banks.html?_r=1&hp

Nationalization of Select Businesses: U.S. Government Perilously Close

December 9, 2008

Congress and the President-elect are doing a deal to “bail out” or provided “loans” to major American industries and businesses.  Then there is an idea that perhaps the Chief Executive Officers need to retire — a decision made for decades in America by stockholders and Boards of Directors…not by legislators or other politicians.  Are we on the slippery slope?  And to what?

****

When President-elect Barack Obama talked on Sunday about realigning the American automobile industry he was quick to offer a caution, lest he sound more like the incoming leader of France, or perhaps Japan.

“We don’t want government to run companies,” Obama told Tom Brokaw on “Meet the Press.” “Generally, government historically hasn’t done that very well.”

By David E. Sanger
The New York Times

U.S. lawmakers Barney Frank, left, and Nancy Pelosi, right, speaking at a news conference on the proposed bailout of the U.S. automakers on Monday. (Doug Mills/The New York Times)

But what Obama went on to describe was a long-term government bailout that would be conditioned on government oversight. It could mean that the government would mandate, or at least heavily influence, what kind of cars companies make, what mileage and environmental standards they must meet and what large investments they are permitted to make — to recreate an industry that Obama said “actually works, that actually functions.”

It all sounds perilously close to a word that no one in Obama’s camp wants to be caught uttering: nationalization.

Not since Harry Truman seized America’s steel mills in 1952 rather than allow a strike to imperil the conduct of the Korean War has Washington toyed with nationalization….

Related:
Government Picks Winners, Losers, Calls Other Shots and Pays The Bills: Happy Now?

Read the rest:
http://www.iht.com/articles/2008/12/09/business/09nationalize.php