9 Largest Banks will be partially nationalized tomorrow.

[Waiting For Everyman]

CNBC announced at about 7pm EST that early tomorrow morning there will be a meeting of these banks, followed by an announcement from Bush. This is an involuntary program, and will take about $250bn of the bailout funds. It's being done to match the European program so that money doesn't flow out of our banks, seeking greater security in Europe.

The government will be guaranteeing inter-bank lending, so hopefully that will free up credit.

I get the feeling that the banks didn't participate in the program before voluntarily, because they have some things they'd like to keep hidden... like derivatives that haven't been devalued and sky-high compensation for top management. I hope the Feds look over their balance sheets, and deal with whatever is wrong.

It probably isn't nationalizing enough, but it's a start.

[blue sky at night]

1. nationalized........

attention repukes: this is exactly the same as SOCIALISM, AND YOUR FUCKING DOUCHE BAG bu$h is DOING IT.

[Waiting For Everyman]

2. Kudlow is freaking out.

But there isn't much he can say against it, even so.

[Virginia Dare]

29. Good, I hope he pops an artery...n/t

[MadMaddie]

6. You beat me to it! The Repug supporters don't get it

maybe if they read a little more.....oh well.

[blue sky at night]

50. BTW....

i should have said I don't disagree with the idea, it is just I am so sick of pukes using the word as some sort of dagger against the DEMS for all of these years. they are such hypocrites.

[MadMaddie]

55. Yep on the same page with ya

For some reason socializing failed banks is okay but if the government dares to socialize health care for all Americans then all bets are off....

I agree the government has do to do someting....

[skooooo]

17. Boy you are so right!

The irony!

[RollWithIt]

27. That's the weird thing... they don't want socialism under Obama... but GWB is doing it ahead of time

Lots of irony.

[RadicalTexan]

34. I humbly disagree

See http://swimmingwolves.blogspot.com/2008/10/socialism-isnt-welfare.html

(not writetn by me)

[GuvWurld]

54. Thanks for posting this link

I read the post and all the comments, then added the following:

Thank you for this blog post. It is an important distinction you are asking people to make, and I think it is right on. Since you are saying corporate welfare doesn't mean socialism, your post stops short of saying what corporate welfare really is...part of the mosaic of characteristics that define fascism, an equally important distinction to promote.

[malaise]

3. Bushco and Paulsen had no choice

The Europeans are calling the shots. Wall Street lied to the world and the game is over. They know that there will be no money from the rest of the world unless the banks are partially nationalized.
Can't wait for hubby to come home to give him a hug - he is one smart economist.

All the international news except M$Greedia is saying that Europe is leading the way on the new economic model for planet earth - democratic socialism is back. We wasted 32 years here in Jamaica and so many lives were destroyed in the process.

The Shock Doctrine is dead. Obama gets a clean canvas to paint. Oh Happy Day!!

[trthnd4jstc]

Imagine what $700 Billion would do if we had Federally Owned Factories, instead of parially

nationalized banks. We could hire several 10's of thousand of workers if our government started manufacturing, instead of bailing out of banks. Imagine having nationalized energy. We could assist nearly a million people or more during the next winter. I believe in carefully crafted Democratic Socialism. We could have a Socialism that would assist many thousands, and have a huge multiplier effect with the cash paid to those workers, and the vendors of those factories.

[malaise]

7. Have no fear

The people will soon let their voices be heard. They won't be denied for much longer. The model is dead, dead, dead. Schools, bridges, roads - government can get involved because they got involved in the banks - hahahahhahahah :rofl:

GObama!!

[Eric J in MN]

24. If they were spending $700 billion on US factories to make consumer products...

...which the world wants to buy, that would give me a lot more confidence in the economic future.

[trthnd4jstc]

25. That is what I think. Thanks for the reply. I have a tiny business: I am trying. n/t

[On the Road]

33. If That 700B Were Put into Manufacturing

the country would have nothing because it would have no financial industry. There would be no one to sell of the products to.

It is not a choice of where anyone would prefer to put the money. It has to be done to prevent an economic collapse.

[Elidor]

37. I've been thinking about the CCC lately

Civilian Conservation Corps

Civilian Conservation Corps (CCC) was a work relief program for young men from unemployed families, established on March 21, 1933, by U.S. President Franklin D. Roosevelt. As part of Roosevelt's New Deal legislation, it was designed to combat unemployment during the Great Depression. The CCC became one of the most popular New Deal programs among the general public and operated in every U.S. state and several territories. The separate Indian Division was a major relief force for Native American reservations.

http://en.wikipedia.org/wiki/Civilian_Conservation_Corps

One of FDR's best ideas. They built roads and bridges and buildings.

A very small sample of their work is still the centerpiece of a local park:




Putting people to work building infrastructure, especially people who are proud but poor and grateful for the work, is always a good idea. But that goes against the republican drive to privatize every last damned thing on earth.

[trthnd4jstc]

45. It kept my Grandfather employed in 1937 and 1938. Thank G-d. n/t

[Egalitariat]

40. And a central committee of like minded people to determine what to make and how much...

A true worker's paradise!

[Poseidan]

4. i've got a better idea

Let's not nationalize banks.

The government must not be given too much power over the people, lest said power be abused.

Europeans calling shots? Line me up for a scotch.

[DrDan]

14. but . . .

there are some areas of society where government plays a major part

postal, telecommunications. utilities

otherwise the abuse comes from the truly greedy

[Wednesdays]

42. Yup, the Yurpeens are calling the shots

And the U.N. is gonna send in their black helicopters...

:eyes:

[trthnd4jstc]

44. I want the US Federal Government to provide A New Monetary Unit: Time Money

I am not a big fan of our Federal Government getting involved in assisting the Banks. I want the Federal Government to be involved in getting People working and getting manufacturing going in this nation again. I do not buy into the notion that there should not be manufacturing in this country. I believe that if we are citizens of this nation, we take care of this nation first.

Time Money: http://www.siue.edu/~rblain/index.htm

Money Based on Labor, as opposed to Credit/Debt.

It would be better than the Gold Standard, and much better than the current system.

We need to make things. American Labor has some good things about it. I am a tiny Electrical Contractor. When I began performing Electrical Work, most items were made by the US, now most are made by China or India. The Manufactured Goods made in the US were much superior to these foreign goods.

[druidity33]

49. how about this?

http://www.timebanks.org/

have you heard of them?

Seen it in action!

It WORKS!

:)

[trthnd4jstc]

52. Thanks my brother Druidity. n/t

[TexasObserver]

5. and that's why big bank stocks would have been a good buy today

As I said here early this morning.

I don't know what the stock market is going to do on a day by day basis, but I do know that the Paulson plan makes the big banks the levees protecting the economy, and that's why the government will make sure they do not fail.

[malaise]

9. How ironic that the Washington Consensus goons tried to pull off

a complete financial coup and were beaten by the Europeans. You can't rob an entire planet and expect to get away with it - not when they've been financing your stupid wars.
Checkmate!!

[Owlet]

30. But UK bank stocks dropped after takeover

story here: http://business.scotsman.com/13999/Financial-crisis-HBoS-amd-RBS.4584674.jp

[TexasObserver]

58. today's New York Times shows that the four banks are all getting capital

I think it's going to make their stock increase in value.

We'll know soon.

[TexasObserver]

60. Update: those four big banks stocks went UP 7.26% Monday, and look to move UP today.

I recommended before the open of business on Monday buying these four banks' stock:

Bank Of America
Citibank
JPMorgan-Chase
Wells Fargo

Yesterday (Monday) those four each had a one day increase:

+09.20% Bank Of America
+11.62% Citibank
+00.84% JPMorgan-Chase
+07.38% Wells Fargo

+07.26% increase for all four stocks, aggregated

Not a bad bump for one day, although they lagged the overall market rise, mainly because JPMC was flat.

Today, however, will be likely to decide whether my weekend hunch was truly sound. I expected the news I posted above, regarding which banks get how much, to occur during business Monday, but it didn't.

I believe the markets will gobble this news up, and send the big four banks' stock on a rally. We'll know in a few hours. As I've said, I could be wrong. I have been before, and I will be again.

[Mojambo]

8. This'll keep things tied together nicely for a couple of months I'd think.

[PetrusMonsFormicarum]

10. let's not forget

that BushCo. still holds the reins of power, and according to the right-winger playbook, nationalizing the banks is an important step toward development of a corporate-fascist state. As bad as the last eight years have been, they have merely softened up the country. The BushCo train is still running.

[MichiganVote]

11. Where oh where are the indictments?

[Shakespeare]

12. I've been laughing my ass off about this for a few days now.

Just watching the rightwing heads explode is like the 4th of July. Beautiful to behold.

[Waiting For Everyman]

13. Actually the UK pre-empted everybody, after meeting with Japan.

What Japan learned from their problem in the past was to go for the whole encilada. I think maybe our system is too big for that all in one bite, but that's where we're going eventually.

[malaise]

16. They all opted for the Swedish model

from the 90s.

[Junkdrawer]

15. Have they mentioned bank names?

:shrug:

[Waiting For Everyman]

18. There's a "firewall 4" that will not be allowed to fail, and then another 5.

The 4 are Wells Fargo, Bank of America, Morgan Stanley, and I forget the last one but unless I heard wrong, it wasn't Citibank. It's said that Citi is probably going to hook up with one of them.

[Junkdrawer]

21. National City?

:shrug:

[Waiting For Everyman]

23. I don't think Nat's in the 4, but not totally sure on that.

Goldman, maybe. That's probably the one I forgot. I'm not used to thinking of that as a regular bank yet. MS either, but it's Mitsubishi deal was talked about a lot today.

[sarcasmo]

39. They are done, stock is down to two dollars it's only a matter of time before they collapse or are

bought out, IMHO before the end of the year.

[fascisthunter]

19. It's NOT Socialism... it's Fascism

Socialism is designed to benefit all... this is fascism

[malaise]

26. One step at a time

The British Government had a big share of Barclays and there was Democratic Socialism.
There will be a wave of citizens protest across the globe demanding more spending on the social good.
This is a major collapse of the neoliberal model. This was not Paulsen's plan. The Europeans ensured that the Bushco plan was going nowhere.

[fascisthunter]

32. I Hope So

[earth mom]

41. I really hope you are right. I just don't trust the criminals in charge here to allow something

that might be for the good of the people. So I'm EXTREMELY wary.

[malaise]

48. Did you hear Obama and then Barbara Boxer

on rebuilding roads, bridges and schools. If they can bail out the private sector, they can bail out the citizens. Neo-liberalism is dead - even Jeffrey Sachs said so. :D

[RadicalTexan]

35. What s/he said.

See my post #34.

[medeak]

20. link? n/t

[Waiting For Everyman]

22. On CNBC right now.

I'm sure they'll have a video link later. It's the 7pm EST Kudlow show.

[AlinPA]

28. Do we know which ones ?

[Waiting For Everyman]

31. Ok, here's the 9...

They said it again...

Wells Fargo, Bank of America, Morgan Stanley, JP Morgan, Merrill, Citi, Mellon, Goldman, and State Street.

Oh, and they're saying $125bn now instead of $250bn.

[Leopolds Ghost]

36. So the banks partially owned by the country's richest families dating back 100 years will be rescued

Along with the mega-monopolies "too big (monopolistic) to be allowed to break up (fail)". How is this anything other than fascism, or mercantilism? Seems to me the latter.

People should not look to Europe for democratic socialism. Europe is a state-capitalist society.

[Waiting For Everyman]

46. "Too big to fail" may become "too big to be private".

I agree it's "iffy" right now, we'll have to see. But I have a feeling that's how it's going to turn out. If so, the neocons' reign is truly over.

I think they painted themselves into a corner and had no choice. Granted, they could try to re-privatize later. So it'll still take struggling with it to make this go in a good public direction. But it's a rare chance, to do that. We don't get them often, and usually through circumstances like this. I hope we make the most of it.

The big question being ignored - when do we get a floor under mortgages which are hanging by a thread? The recent job losses and the ones coming are going to make that worse, when it could be stabilized now, not to go there. Obama advocated a foreclosure moratorium today, which is a good sign b/c that's the first preliminary step to take, just to have some time to process modifications.

[AlinPA]

51. Thanks a lot.

[sarcasmo]

38. New World Order take over is complete.

I wonder what Bush 41's cut is in dollar amounts. I am sure most of you recall his New World Order speech.

[Waiting For Everyman]

43. A Bloomberg story has come out on it now here...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3543017

[bertman]

47. Bigger, bigger and now government-funded. Yep, the NWO is here.

Guaranteed security and profits for the mega-rich. Guaranteed subjugation of the working classes.

[Neshanic]

53. The banks: Hooterville Bank, Mayberry Bank, The Bank Of Mayfield.

These are the only banks solvent, but then they are not connected nor have any GS people on staff or past people now working the scam with Paulsen and Bernanke.

Uncle Joe says he will be taking out his Melon money before the bastards nationalize it.

Rumor that Arnold Ziffel will be withdrawing his slop savings.

[endthewar]

56. YAY! I always wanted to own a bank!!!

:bounce: :bounce: :bounce: :bounce: :bounce: :bounce: :bounce: :bounce: :bounce: :bounce:

[Jed Dilligan]

57. Cool. I'll be waiting for my quarterly dividend check.

They can mail it to the same address where I've been paying taxes.

[TexasObserver]

59. From Tuesday's New York Times, the breakdown and banks