Lindsey Graham, the Republican senator for South Carolina, says that many of his colleagues, including John McCain, the defeated presidential candidate, agree with his view that nationalisation of some banks should be “on the table”.
Mr Graham says that people across the US accept his argument that it is untenable to keep throwing good money after bad into institutions such as Citigroup and Bank of America, which now have a lower net value than the amount of public funds they have received.
“You should not get caught up on a word [nationalisation],” he told the Financial Times in an interview. “I would argue that we cannot be ideologically a little bit pregnant. It doesn’t matter what you call it, but we can’t keep on funding these zombie banks [without gaining public control]. That’s what the Japanese did.”
This is easy. Sen. Graham needs to start thinking link a conservative, not the New Republican Party (otherwise knowns as RINOs). Once he accomplishes this (admittedly not simple) task, the answer is obvious: We don't need to nationalize the banks. We don't need to use the "Japanese model" (or the Swedish model) either--we simply need to allow the banks, along with all other business that can't make it in the free market, to...wait for it...
Yes, we need to allow the evil marketplace to do its dirty work, painful as it will be to many. In the end (perhaps a decade or three), the smart folks will pick up all the pieces and put together a new structure, all the old excesses will be washed from the books, and we can get back to business.
Of course, John Maynard Keynes being all the thing right now, that isn't going to be allowed to happen. We're going to go from bad government policy to bad government policy, searching for a quick fix to a problem that has taken decades to create. It will get worse and worse, until something truly ugly happens and the Keynesians run out of things to try. Then the evil marketplace will do it's work anyway.
We'll have just pissed away a lot of time and money trying to stop it from happening. No big problem, right? So what if we saddled future generations with a debt they never asked for and dragged the entire world economy through the mud. Hey, we're all globalists here! We all need to march in lockstep to the edge of the cliff. As long as we act together in a coordinated fashion, it'll be OK. We're smarter than we were the last time this happened. Uh, why are we falling?
Idiots, one and all.