JohnL

Nationalizing the U.S. Banking Sector: There's No Choice

"The good news is this: most policymakers agree that letting the banks fail is an unacceptable outcome."

You know we've arrived in Wonderland when it's good news that failed capitalists will be made whole, at the expense of their competitors and the taxpayers. It's sad commentary on how dishonest and immoral this "free market" has become.

Will Obama's Solution Finally Save the Banking Sector?

"Unfortunately, the economy and the financial markets have reached a point of fragility where government policy has become paramount."

The banks were always fragile! it is just recently that most investors became aware of the fact. If they were inherently stable, would they be in this mess? The fragility stems from the morally, legally, financially and economically questionable practice of loaning out on-demand deposits. They are playing a confidence game and always subject to a credit contraction and "run on the bank." If you're not familiar with the issue, please research Austrian economics on this question -- particulary von Mises, von Hayek and Rothbard.