Charting Stocks

Famed economist Nouriel Roubini comes out in support of ChartingStocks.net’s theory and says Nationalize the banks (OK I made the first part up).

In an interview with Tunku Varadarajan of the Wall Street Journal, Mr. Roubini says that bank nationalization “is something the partisans would have regarded as anathema a few weeks ago. But when I and others put it in the context of the Swedish approach [of the 1990s] — i.e. you take banks over, you clean them up, and you sell them in rapid order to the private sector — it’s clear that it’s temporary. No one’s in favor of a permanent government takeover of the financial system.”

There’s another reason why the concept should appeal to (fiscal) conservatives, he explains.  “The idea that government will fork out trillions of dollars to try to rescue financial institutions, and throw more money after bad dollars, is not appealing because then the fiscal cost is much larger. So rather than being seen as something Bolshevik, nationalization is seen as pragmatic. Paradoxically, the proposal is more market-friendly than the alternative of zombie banks.”

When asked if the highest level of government be receptive to the bank-nationalization idea, Nouriel responded “I think it will…People like Graham and Greenspan have already given their explicit blessing. This gives Obama cover…I think that we’re going to see the policy (Nationalization) adopted in the next few months . . . in six months or so.”

Side Note: If the bank stocks collapse again on Monday, please don’t blame us this time!

Related posts:

1. Obama has succumbed to bank scare-mongering – Joseph Stiglitz
2. These 10 Banks Will Repay TARP
3. Roubini Calls Jim Cramer a Buffoon
4. U.S. banks ‘basically insolvent’ – Soros
5. Stocks Will Drop; Banks Will Go Belly Up – Roubini