Do you think the Government will take control of Citi or Bank of America?
Best Answer
251 points
MichaelShulman answered 10 months ago …
The obvious answer to the banking crises is to temporarily nationalize the banks by taking the $825-billion stimulus package, adding the remaining $350 billion in the TARP and re-capitalizing the system by writing off all bad debts at once.
Then sell off a percentage of the shares in the newly capitalized banks each year, and get out of the banking business over a five- to 10-year period. That beats the more likely course of action of giving people more money to buy Chinese toys, and automobile companies more money to build the cars people don't want to buy.
Of course, the ideal solution isn't political -- just practical and realistic. But politics will, undoubtedly, win out and slow everything down for long time -- too long.
Does that mean you should short more banks right now? Not quite yet – I'd wait until some of the "Obama will save us" noise dies down.
Answers
989 points
rvilmur answered 10 months ago …
Effectively yes. Through more capital infusions, the government will have effective control of these two walking dead companies. Shareholders will lose almost if not all of their investments.
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102 points
sarbe answered 10 months ago …
I hope so, at least Citi has demostrated a bad managament on the situation, that CEO´s bastards took too much on the bank, and with their stupid policies in foreigners countries like El Salvador they has buyed banks like Banco Cuscatlan and Banco Uno both was good banks, but when Citibank got the control of these banks cut the personal and offer less benefics to the customers. My sister was a legal manager and they fired her without any explication. If you feel that I am talking very upset, let me tell you that.. you are right!!. For latin people like me, we do not like the abuse and hurt your own people. I wish that the U.S goverment take the control of Citi and kick ass that bastard´s CEO.
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alanj answered 10 months ago …
That depends on what you mean by take control. If you mean that the government will be making all the decisions and running the banks like a private business would then no. If you mean doing like they have been recently with other financial institutions and the auto makers then yes. Once they started giving out loans to private businesses there is no turning back the clock.
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731 points
thinker70 answered 10 months ago …
Yesw, not only is there a high probability but it may be just another step on the road to a dictatorship. No i do not mean a typical african or south american one man dictatorship but an effective loss of liberty, as the government in the guise of protecting its citizens nationalizes banks and major industries, tells people where they can work and at what wages and where to live etc. the government progressively becomes a defacto dictatorship
As long as they DEFEND and help perpetuate the present Ponzi scheme that masquerades as a monetary system by hiding behind the Federal Reserve Act instead of coming clean and admitting the fractional reserve fiat currency is a FAILURE and a FRAUD and restore HONEST MONEY that holds its value in purchasing power as gold /silver have done for 5000 years, then increasing government control over our lives is inevitable.
