“Bailing out” the banks is de facto nationalization. The major difference is in the equity stake. Gummint negotiates poorly (that’s an understatement, considering they hold all the cards) on our behalf. You and I know the reaason for this the “playas” are secretly schtupping one another on each side of the table. In actuality this is done in plain sight; but there exists an implicit understanding that everyone pretend to not notice. Using our hard-earned Bailout Bux(tm) (i.e. taxpayer dollars) these “playas” are literally picking your pocket of your future earnings and lighting bankers cigars with freshly minted IOU’s FRN’s.
What kind of return can we expect on our “investment” in these terminal institutions? Nothing. Nada. We’ll never see a dime. We is being robbed.
Indeed the financial geniuses have proven they deserve their just reward. Bonuses for everybody- and guess who pays!?!
“We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system,” says Timothy (“Turbo Taxcheat Timmy”) Geithner, the Treasury secretary — as he prepares to put taxpayers on the hook for that system’s immense losses.
Bailouts for Bunglers by Paul Krugman [NYT]
Bailout? No, I wouldn’t call it a bailout. Daylight robbery is a better description.