- Chelsea Green - www.chelseagreen.com -

Why nationalize the banks?

Posted By JTE On October 13, 2008 @ 7:46 pm In Politics & Social Justice, Socially Responsible Business | No Comments

Ezra Klein, with the assistance of some blockquoting, explains why the ([1] temporary) nationalization of banks accomplishes more than just loaning/injecting money into them, even for the same overall amount of public money being spent. [2] Doing so is the only way of cutting the “Gordian knot” of distrust between the banks. (Though, if you read the comments to his post, you’ll see a suggestion for an alternative knot-cutting option.) Is inter-bank distrust a big deal? This morning’s [3] NPR story suggests it’s super-duper big.

Article printed from Chelsea Green: www.chelseagreen.com

URL to article: http://www.chelseagreen.com/content/why-nationalize-the-banks/

URLs in this post:
[1] temporary: http://www.prospect.org/csnc/blogs/ezraklein_archive?month=10&year=2008&base_name=nationaliz
e

[2] Doing so is the only way of cutting the “Gordian knot” of distrust between the banks.: http://www.prospect.org/csnc/blogs/ezraklein_archive?month=10&year=2008&base_name=nationaliz
ation_not_capitaliza

[3] NPR story: http://www.npr.org/templates/story/story.php?storyId=95591162