Greenspan backs bank nationalisation

[babylonsister]

Greenspan backs bank nationalisation

By Krishna Guha and Edward Luce in Washington
Published: February 18 2009 00:06 | Last updated: February 18 2009 00:06


The US government may have to nationalise some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman, has told the Financial Times.

In an interview, Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.

”It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”

Mr Greenspan’s comments capped a frenetic day in which policymakers across the political spectrum appeared to be moving towards accepting some form of bank nationalisation.

more...

http://www.ft.com/cms/s/e310cbf6-fd4e-11dd-a103-000077b07658,dwp_uuid=c59753ec-d316-11db-829f-000b5df10621,print=yes.html

[malaise]

1. WOW - this is Hugh!!!!!!!!!!!!!!!!!!!!!!!!!!

K & R

sp.

[depakid]

2. Well bust my britches!

and here I was wondering:

[PA Democrat]

3. So is Greenspan no longer a believer in the almighty "Invisible Hand"

of the free market? It's not a "once in a hundred years" phenomenon. It is an event which has been the direct result of unregulated free for all capitalism for which Greenspan was one of the biggest enablers.

[JHB]

4. Barn doors and hoofprints

It's only a "once in a hundred years" thing if you have sound banking regulations for several decades, then spend the next few decades undermining and dismantling them.

Don't leave your shit all over the floor then say we need a good spring cleaning every year, Alan.