Okay I have heard all kinds of things about what is in the stimulus packages. Depending on which political side or whose political agenda it is addressing, the money it all seems to be going everywhere and anywhere, and when that happens, in reality it goes no-where.
It doesn’t help that there are two packages being discussed at the same time either. One is the second half of Bush’s seven hundred and fifty billion and the other a completely new package to address jobs that at this point will be in trillions! But as Grandpa used to say; you can only fill the hole of a leaking boat with your finger for so long: eventually you get that boat to dry land and fix it right or it sinks.
Thus there is a new word starting to be discussed by those who purport to know how to solve Americas financial Armageddon. And the new word we are starting to here is the new “N” word! Don’t panic, the, “N” word is not in reference to the racial slur, but far worse if you have fears of to much government, that word being, “Nationalization.”
Taking the banks out of the free enterprise system to be run by government bureaucrats is a very scary thought. For anyone that has ever tried to get a drivers license and dealt with their states , DMV, or heard of what it was like to by bread in Russia, bureaucracy is no friend of the free market system but the epitome of everything in the free market system going wrong.
To hear the people that know and can understand what is going on in the banking system talk, Nationalization may be our last and best ditch effort to save our banks. One can find little ground to argue the point given the fact we gave the banks billions only to be told in so many terms, “What money? They kept it, the spent it on themselves, they used it for bonuses and they actually may have used it to improve their situations by buying other banks. As usual the previous administration takes no blame and Republicans who have at last seen the light want nothing to do with stimulus funding of anything and the idea of Nationalization will be a no brainer for them; No.
In reality though, Nationalization of the banks would give the government unprecedented power that quite frankly makes anyone with money in a bank nervous. To this point we have avoided runs on banks and sat quietly on the side while the FED moved in and took over local banks and took care of its depositors. To read about it in the paper it almost appears like a normal banking day! I can assure you, that the taking over of your local bank is no, “normal banking day!”
Bottom-line however, is that things are worse than any of us have been led to believe. Yet trying to understand how we got into this mess or how to get out of it is even harder to comprehend. We are a nation whose economy is now based on service and not nuts and bolts and widgets we make by the hour. We need a financial system we can trust, depend on, borrow from and use to address the basic needs of our lives.
So if the new, “N” word is what we need to get out of this mess, then lets get it on. For sure it t doesn’t help that none of us have any real faith in the government to be able to do what they say given the fact the last few administrations have been anything but fiscally conservative or rock solid financial managers! (More to come….)