That makes the most sense to me...i just figured it was too simple to be realistic. Nationalize the banks for a few years, clean them up, sell them back to the private sector.
On Tue, Jan 27, 2009 at 7:26 PM, Gruss Gott <[email protected]> wrote: > > In July 2006, Nouriel Roubini predicted the financial crisis. > > In February of last year, he forecast a "catastrophic" meltdown that > central bankers would fail to prevent, leading to the bankruptcy of > large banks with mortgage holdings and a "sharp drop" in equities. > > [Speaking from Zurich today] Roubini said the U.S. government should > nationalize the biggest banks because losses will exceed assets, > threatening to push them into bankruptcy. The banks could be > privatized again in two or three years, Roubini said. The professor > reiterated his prediction that U.S. financial losses will more than > triple to $3.6 trillion and that global equities will fall 20 percent > this year from current levels. > > "Nobody's in favor of long-term ownership of the U.S. banking system > by the government, but if you don't do it this way, you end up like > Japan where you kept alive for a decade zombie banks that were never > restructured," he said. "That's going to be much worse. It's better to > clean it up, nationalize it and sell it to the private sector." > > Japanese policy makers hesitated in addressing a banking crisis in the > 1990s and then struggled to revive growth and fight deflation in what > is known as the "Lost Decade." > > Roubini recommended holding cash or short-term government debt and > said high-yield bonds are cheap relative to U.S. stocks. > > Deeper Into Recession > > The world's biggest economies are sliding deeper into recession as the > fall-out from the global financial crisis hobbles manufacturing output > and punctures consumer spending from New York to Beijing. The U.S. > economy probably contracted at 5.5 percent pace in the fourth quarter, > the fastest in 26 years, a survey of economists showed. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:286979 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
