View Poll Results: Should the "too big to fail" be nationalised?

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Thread: Should the "too big to fail" be nationalised?

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    Should the "too big to fail" be nationalised?

    If things start to go nasty again and new bailouts are on the way, should the "too big to fail" be nationalised instead?

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    Re: Should the "too big to fail" be nationalised?

    Quote Originally Posted by Canell View Post
    If things start to go nasty again and new bailouts are on the way, should the "too big to fail" be nationalised instead?
    Yes, and with minimal compensation to stockholders.

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    Re: Should the "too big to fail" be nationalised?

    Quote Originally Posted by Canell View Post
    If things start to go nasty again and new bailouts are on the way, should the "too big to fail" be nationalised instead?
    If by nationalized, you mean given explicit regulatory authority over the nation, then yes.

    Banking would be a lot easier if banks could control consumer culture instead of affording debt-fueled hedonism where people live irresponsibly.

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    Re: Should the "too big to fail" be nationalised?

    Quote Originally Posted by Canell View Post
    If things start to go nasty again and new bailouts are on the way, should the "too big to fail" be nationalised instead?
    As I understand it, we did not get into this crisis because institutions were "too big to fail."

    Rather, they got "too big to take risks."

    There's a constant tug between risk and reward when it comes to investments. The greater the risk, the greater the reward. But there's also greater chance of loss of that original investment.

    So what I think should be done is we should is for financial institutions the larger they are the more money they should put in safer investments and hold in reserve against losses.

    Doing this will inherently reduce a firm to become "too big to fail" as the size of an institution directly indicates how much risk they can manage, and those that are the largest must invest in the least risky investments.

    Of course, none of this will matter if we allow the financial institutions themselves to write the regulations they must follow...
    Also, we need to legalize recreational drugs and prostitution.

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    Re: Should the "too big to fail" be nationalised?

    Yes...and then broken up and sold off.

    But we should also be proactive, and set very strict rules and forced sell offs and break ups of these institutions ahead of time. Problem is, if we look at the "big banks" these days, that would mean pretty much all major banks in the UK, US, and Europe should be broken up due to their over all size vs the risks they take. I mean the big US banks are BIGGER now than they were in 2007 when the sub-prime mortgage market collapsed and almost brought down the whole banking and financial system in the US.

    We should also do one very important thing.. put back the firewall between normal banking.. aka what we depend on.. and the highly risky crap that caused the problems in the first place.. Yes Glass-Segal like legislation. Problem is the right in many countries are actually against such legislation.... which frankly is pathetic.
    PeteEU

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    Re: Should the "too big to fail" be nationalised?

    In a free market capitalist system those too inept to succeed should fail ! Nationalizing these companies would fundamentally change our system into either fascism or socialism both of which will rely more on the capriciousness of the controller. Think US Postal Service but delivering more than just mail !
    The question is more important than the answer!

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    Re: Should the "too big to fail" be nationalised?

    Quote Originally Posted by Canell View Post
    If things start to go nasty again and new bailouts are on the way, should the "too big to fail" be nationalised instead?
    Orderly liquidation into some number of smaller entities, kind of like what we do with monopolies.

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    Re: Should the "too big to fail" be nationalised?

    Quote Originally Posted by Daktoria View Post
    If by nationalized, you mean given explicit regulatory authority over the nation, then yes.

    Banking would be a lot easier if banks could control consumer culture instead of affording debt-fueled hedonism where people live irresponsibly.
    Except the banks profit from that debt-fueled hedonism. Remember, it was the lending institutions who pushed for sub-prime loans. Nobody did anything about it because there were too many people making too much money.
    Also, we need to legalize recreational drugs and prostitution.

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    Re: Should the "too big to fail" be nationalised?

    Quote Originally Posted by Disputatious71 View Post
    In a free market capitalist system those too inept to succeed should fail ! Nationalizing these companies would fundamentally change our system into either fascism or socialism both of which will rely more on the capriciousness of the controller. Think US Postal Service but delivering more than just mail !

    The problem with the free market system is that the realization of failure is after the crisis. Rather, the government should have a regulatory role so they are proactive in protecting the investors in these banks.
    Last edited by samsmart; 06-03-12 at 09:19 AM.
    Also, we need to legalize recreational drugs and prostitution.

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    Re: Should the "too big to fail" be nationalised?

    Quote Originally Posted by samsmart View Post
    The problem with the free market system is that the realization of failure is after the crisis. Rather, the government should have a regulatory role so they are proactive in protecting the investors in these books.
    This thread is not discussing problems with these market systems only whether or not the problem companies should be nationalized.
    The question is more important than the answer!

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