Reply #85: "these banks that have failed in the private sector are ... being nationalized"

[PatrickSMcNally]

That's a butchery of the English language. Once more, what has been carried out has been a privatization of the Treasury. To speak of nationalization of banks means first of all the imposition of regulations as a means of depriving the banks of their authority to act as independent corporate entities. Nothing like that has been even suggested. All of the bailout talk has given clear emphasis to the idea that once banks receive money from the Treasury it is their private affair what they do with it.

"if we're going to be nationalizing the banks, nationalize them in the interest of everyone"

Here you've gone very far outside of anything having to do with the Federal Reserve System per se. As I've already mentioned, the Bank of England was nationalized in 1946. No, this was not a bailout with the Labour government forking over trillions of dollars to private hands to be allowed to disappear such as we've seen here in the USA in the last couple months. This was a nationalization of the Bank of England. If simply wished to argue that the banking system of the USA should be completely nationalized then we might be closer to agreement. But none of that has anything to do with hokum theories about the Fed being created in 1913 as part of a grandiose conspiracy to bankrupt the USA. That's just rubbish.