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February 16, 2009
Nationalizing the Banks Seems Inevitable: How Bad Does It Have to Get First?
By Margaret Bassett
Failure to act decisively over the collapse of our banking system could mire the US in a protracted slump, like Japan's "lost decade" in the '90s. During the savings and loans failures of the late 1980s, first Pres Bush took over insolvent institutions that were judged to be "too big to fail," wiped out the banks' shareholders, protected depositors, and sold off the institution asset in an orderly fashion, minimizing shock
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Failure to act decisively over the collapse of our banking system could mire the US in a protracted slump, like Japan's "lost decade" in the '90s. During the savings and loans failures of the late 1980s, first Pres Bush took over insolvent institutions that were judged to be "too big to fail," wiped out the banks' shareholders, protected depositors, and sold off the institution asset in an orderly fashion, minimizing shock