Wednesday, February 18, 2009

Greenspan: Nationalize The Banks

I am not as high on nationalization as the article appears to be. Still think we need an "exit strategy" but ....

Greenspan: Nationalize The Banks:
"Alan Greenspan has jumped on the bandwagon.

(Okay, Greenspan doesn't have the power to implement this solution, but he used to).

Importantly, Greenspan also suggested that bondholders should take a hit--which they should. In typical Greenspan fashion, he didn't say this directly. He said we need to protect 'senior' bondholders. Which means we can go ahead and hose the junior ones."

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