kruser53

Is the British Pound on the Path to Collapse?

morph366, I was incomplete in my comment. The IPO proceeds, and sales proceeds of assets, should go to the U.S. Treasury ("the taxpayer"). I have read a recommendation that nationalization, if needed as a last resort, should be accomplished by paying the market price to buy out shareholders. I would agree. If C is going under, buy out all the stock at $3 (or whatever the price is at the time); the same for BAC at $5 or $6.

Is the British Pound on the Path to Collapse?

If nationalization of any banks takes place, it absolutely must be for reorganization only, RTC-like, and not operated by the Fed or any agency of government. The government would own the bank but the operation should be totally independent of any government interference.

The purpose should be to sort out assets, take the solvent structures public ASAP through IPOs and retain the "toxic" assets in an aggregatator bank (government owned) until they can be sold at some later date, or assembled into one or more solvent banks when their actual value becomes established.

Let me just state once more, for emphasis, that the government may own failed banks, but, at no time should the governemnt or the Fed operate them.

Preserving Wealth During the Global Banking Crisis

Great comment stream for a great article. Prudentinvestor has made some particularly good points.

Preserving Wealth During the Global Banking Crisis

Thanks to another SA reader for e-mailing me a link to this exceptional article this morning.

Alex Trias, you have some very good thoughts. I agree we are going to some level of privatization and government ownership to get through this deleveraging process. I am afraid that we may replace the oft quoted saying "We are all Keynsians now" with a new saying: "We are all socialists now". And, if so, we have been lead there by the captains of capitalism who get to keep their billions while the rest of us struggle to climb out of the yoke of socialistic slavery.

Eight Reasons to Prepare for a 2010 Credit Crunch

Excellent article.

The Fed was created to stabilize the banking system. It took about 90 years for the "protected" to eat the "protector".