Thursday, February 12, 2009

George Soros on nationalization and the bank problem


The hard choice facing the Obama administration is between partially nationalising the banks, or leaving them in private hands but nationalising their toxic assets. Choosing the first course would inflict great pain on a broad segment of the population – not only on bank shareholders but also on the beneficiaries of pension funds. However, it would clear the air and restart the economy.

According to this take, nationalization would be bad for peoples' wealth and retirement funds in the short and medium terms. But nationalization would be good for economic growth in the long term. Tough call. Source.

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