Legal Commentary

The GOP Plan On The Financial Crisis: Let The Banks Fail

By Big Tent Democrat

NYTimes:

John McCain and Richard C. Shelby, two high-profile Republican senators, said on Sunday that the government should allow a number of the biggest American banks to fail. “Close them down, get them out of business,” Mr. Shelby, the senior Republican on the Banking Committee, told ABC’s “This Week With George Stephanopoulos.” “If they’re dead, they ought to be buried.” While the Alabama senator did not say which banks to shutter, he suggested that Citigroup might be on that list, saying the bank has “always been a problem child.”

Mr. McCain, appearing on “Fox News Sunday,” echoed that sentiment without identifying any banks. Mr. McCain, who lost the presidential election last November, also accused the Treasury Department of avoiding the “hard decision” to let “these banks fail.”

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I bet temporary nationalization does not sound so bad now. In that sense, I think this is a good wakeup call for President Obama and Treasury Secretary Geithner -- bailout money for free ain't coming that way anymore. Bailout money will probably require temporary nationalization now. Enough with the playacting. Time to take action. Time for temporary takeovers of banks like Citi. It's the only choice now.

Speaking for me only

Full post as published by TalkLeft on March 08, 2009 (boomark / email).