Monday, Nov 24, 2008
Nationalizations take dramatic losses from the private sector and places them on the larger balance
CNBC: All US Financials Will be Nationalized in a Year
It's not preferable, but all major U.S. financial companies will eventually be under government control because the alternative is so much worse, Hugh Hendry, chief investment officer at hedge fund Eclectica Asset Management, said Friday.
All financials will be owned by the U.S. government in a year," Hendry said. "I bet you."
Nationalizations take dramatic losses from the private sector and places them on the larger balance sheet of the public sector, he said.
"It's not good," but society is vulnerable and society is going to have to intervene, Hendry said.
Posted by malct @ 07:32 PM (341 views) Add Comment
5 Comments
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1. planning4acrash said...
This ties in well with the Mayan Calendar, A year from now we see national governments collapsing, and, if its New World Order voodoo, then world government by 2012, or, if its a true prophecy, then global enlightenment and Liberty with the big government/corporate/military/pharma/agri industrial complex destroyed by 2012.
2. malct said...
this is hardly capitalism as we know it, is it Jim?
3. japanese uncle said...
All financials except for FRB, yes.
4. drewster said...
Seems quite sensible to me really. If the government is having to pay billions to bail out the banks then it should get equity in exchange. It's a straightforward debt-equity swap. A similar thing happened in Japan, a similar thing happened in the Scandinavian banking crisis of the early 1990s. It's not the end of the world, in fact it's a rather sensible solution. Shareholders get wiped out, excessive bonuses get curbed, the entire banking sector shrinks a bit. I'd call that a positive outcome.
5. planning4acrash said...
Drewster, its sensible till you realise that government caused this problem in the first place, and that they will just delay the inevitable correction by intervening. The only solution is bankruptcy, deflation and a return to sound money.