Thursday, October 09, 2008

Uncle Comrade Sam's Bank

Over the past couple days, Commissar Paulson has been coming around to the position that if we're going to give hundreds of billions to banks, the government is going to have to get something for our money -- ownership. That means the people, or us, through the agency of the government which (theoretically) represents us, will be part owners of these institutions.

From the NYT this morning:

Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system, according to government officials.

Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into banks that request it. Such a move would quickly strengthen banks’ balance sheets and, officials hope, persuade them to resume lending. In return, the law gives the Treasury the right to take ownership positions in banks, including healthy ones.

Have you been to our bank this morning, comrade?

As Atrios comments, "Only Nixon could go to China. Only Bush can finally bring the Marxist Revolution home!"

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