Then word came from the White House that they didn’t think nationalization was on their agenda and the market rallied back instead of plunging into the abyss. It would seem the Govt panicked and felt compelled to step in and try to calm the markets.
The fact remains that many banks are now insolvent and all the positive talk about how we don’t need to nationalize some of them is a moot point. We are already nationalizing them so to speak whenever a bank gets taken over via FDIC.
Eventually we will have to come to terms with all the toxic debt the banks are carrying, and the Govt should NOT put that toxic debt on the backs of all taxpayers.
Things are pretty rough and getting rougher as the money flow continues to shrink. State governments are struggling with dealing with less money through tax increases and reductions of services. Atlantic city is reeling with multiple casinos going into bankruptcy with Trump trying to get his name off the ones going under.
In a surprise twist, Arnold Schwarzenegger shows he is capable of thinking beyond movie scripts and actually performed well as Governor in trying to find middle ground in the CA budget impasse, which was helpful in getting it resolved.