Here's my two big problems with regulations and nationization:

1.  There's no guarantee that the lawmakers are going to be any less corrupt than the individual institutions (aka congress for letting this happen in the first place).  In fact by giving them more power, you are making washington a more attractive place for those individuals who are corrupt.  Basically you are begging for more corrupt people to run for congress and more lobbiests in washington.

2.  There's no guarantee that whoever is running the institutions are going to be competent (a la the initial botched Katrina recovery).  I mean is anyone on the finance or banking committees trained as bankers or economists?  If they aren't who's giving them their info on which they base their decisions, the people at fanny mae?  The people who need to run these companies are people who know how to manage wisely in that field.  If you put it in the hands of politicians, the banks will be run by politics, lobbiests, and just as much greed as before.

There's one other thing that really scares me about the US government taking over banks.  If I remember right, in the past 40 or so years congress has repeated raided social security and has left somewhere in the ballpark of 5 trillion dollars in IOUs.  So if they take over the banks, what'll happen if they need more money for whatever useless thing they are working on? Instead of $1,000 in the bank your average Joe goes to his atm and sees an IOU for $1,000 and can't take out any money.  If the government owns the bank, realistically they can do anything they want with the money you have stored there.  They'll just claim they needed it for the Crisis of the Month (CotM) and promise to send you a check back in 90 days.  And you can't take it up with anyone because the only people you can complain to is the government who raided your bank account.

If you are a democrat, would you trust a republican congress with your life savings?
If you are a republican, would you trust a democrat congress with your life savings?
If you are an independant, would you trust either congress with your life savings?

See where I'm coming from?

Anyways I think those institutions were a public menance but where was congress when they needed to be kept from growing too large or kept from putting so many assets in risky mortgages?  They certainly needed some form of regulations, but they didn't do it and the government hasn't done it so who are we the people supposed to turn to?

WARK!

Thus Spoketh Winterclaw: a blog about a Winterclaw who speaks from time to time.

 

(using Poser Pro 2014 SR3, on 64 bit Win 7, poser units are inches.)