Skip to content

Nationalize the Banks?

February 14, 2009

Matthew Rothschild, writing in The Progressive thinks nationalizing the banks is a good idea. I’ve seen and heard many wrongheaded ideas of late, but this one leads down an irreversible path toward Socialism.

The only accurate statements in Mr. Rothschild commentary is that the banks “don’t deserve to be bailed out” and “if our government really believed in free enterprise, these banks would be out of business right now.” Any rational person is hard pressed to disagree with him there.

Like many others, Rothschild lays the blame for the current economic malaise at the feet of the banks, charging them with making “unwise home loans” and “speculating in unregulated credit-default swaps tied to those loans.” While it is true that financial institutions did make unwise loans, the federal government’s coercion made those loans possible.

The coercion I referred to is in the form of government regulations that forced banks to loosen lending criteria. As with most government interventions, certain loopholes were included in those regulations. After all, our elected “representatives” are the best that money can buy.

Buying those banks and forcing them to comply with further restrictions – and new loopholes – is not the answer. We have no means to prevent corruption in our government as it currently exists. That problem increases as the size and scope of government increases.

Rothschild is concerned that even though the government is pumping billions of dollars into those banks, we have no voice in how the banks are run. We the people pay over $1.5 trillion each year in personal income taxes. How much of a voice do we actually have in the running of our government? Does anyone truly believe that nationalizing the banks will give any more power or oversight to the people?

For that matter, does anyone truly believe that government can run a for-profit business better than private enterprise? What a great success story our government is: $11+ trillion national debt, and over $65 trillion in total obligations. Sadly, those numbers apparently are not enough to open the eyes of the majority of my countrymen. The very people we’ve entrusted to represent our interests to the federal government, have instead sold us and generations yet unborn into economic slavery… and still, we ask for more. 

Those banks in danger of collapse aren’t holding a fire sale to dump the toxicity from their balance sheets. They know their knight in shining armor, the American taxpayer, can always be depended upon to bail them out, or as suggested by Mr. Rothschild, buy them out.

I’m not willing to sacrifice freedom for a little bit of security. Let the banks fail; let their assets be sold at true market value, as defined by the price a buyer is willing to pay.

Until next time,

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: