Giving banks $700 billion dollars makes a lot of us nervous. What is really unnerving is the fact that there was no willingness on the part of the US government to direct the banks about what they were to do with the money. In other words, as many of these banks are already fiscally insolvent, they are not going to dispense the money and make it available to people in need of credit if all they are trying to do is try to prolong their own existence. They’d have to be forced to do so by a greater power. The greater power could have been the terms of a contract with the US government, but no real negotiation took place.
Paul Krugman calls it fear of the N- word – nationalization. I call it fear of making a REAL DECISION by Republicans or Democrats.
If the banks are going to take taxpayer money in the form of a so-called stimulus package, then representatives of those taxpayers should have all the rights and responsibilities of control over that money, or it ought to have been NO DEAL. Nationalization or nothing. If our government representatives were unwilling to take on that responsibility, than they should not have been giving away the money to banks who are bound to have conflicting interests that will not serve the American people. We have to choose one way, and see if it works. If it doesn’t, we try something else – like Bush and his SURGE in Iraq. There was no real debate between Democrats and Republicans on this issue. We needed a winner and a loser in the debate, rather than a compromise that allows everyone to keep pointing the finger elsewhere when things don’t work out.
Ask nobel prize winner Paul Krugman – a very liberal economist: