Tuesday, January 20, 2009

Nationalization of Banks in the US

As I was listening to the news on NPR news radio on my way home from the office, I noticed that one of the main topics was the potential nationalization of banks in the US.

This comes as a natural question as a consequence of the nationalization of the Anglo Irish Bank by the government of Ireland earlier this month, and talks in the British parlaiment about it too. I have always thought of nationalization of banks as a dramatic and proven ineffective solution to a big problem. Specially when it is a sign of paternalism and goes against pure free markets theory.

Hence, I decided to get home and google about it to read more about it. Although, I found no links about nationalization of banks in the US, but a ton related to the forced nationalization of Banco de Venezuela in Venezuela last year. Precisely what I expected to find!; I have always associated nationalization with totalitarianism and immature governments. It makes me wonder if all this is really going to work out... this time.

1 comment:

luke said...

I'm not sure all the forced nationalizations are going to be good for the future of Venezuela. It's not really an encouraging sign for any potential foreign investors.