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  1. #1 Europe: Screw the Paulson Plan, we’re nationalizing our banks 
    An Adversary of Linda #'s
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    More specifically, England has decided to spend 35 to 50 billion to buy preferred shares in the largest most troubled banks. Assuming they're not non-voting that amounts to nationalization. It will increase the banks capital base substantially, thus hopefully directly ensure that they aren't insolvent and can lend again. I am also hearing that Germany has a similar plan in the works.

    Notice that they are not buying up the trash on the banks books (though I'm also hearing rumors that the banks really really wanted them to.)

    I'm not convinced this will fix the entire problem, but if you think the problem with banks is that they're insolvent and that other banks are scared to lend to them, then this at least makes sense. It also means that banks don't need to keep money aside to buy up other banks in case they fail, since the government is effectively saying "we won't let banks fail." On the other hand, it still doesn't deal with the fact that banks don't want to lend for less than inflation+reasonable profit.

    However regulators and the social contract in both Germany and Britain are a lot stronger than in the US, as is the willingness to, oh, lean on people. As a result the banks, now more or less owned by the government, may find it in their hearts to start lending again, as their new lords and masters desire.
    http://firedoglake.com/2008/10/07/eu...ing-our-banks/
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  2. #2  
    Senior Member IanMartins's Avatar
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    Iceland nationalizes major bank under emergency law, announces $5.4 billion loan from Russia
    http://biz.yahoo.com/ap/081007/eu_iceland_banks.html
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  3. #3  
    An Adversary of Linda #'s
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    Quote Originally Posted by IanMartins View Post
    Iceland nationalizes major bank under emergency law, announces $5.4 billion loan from Russia
    http://biz.yahoo.com/ap/081007/eu_iceland_banks.html
    Russia will want a refueling stop with full runway facility's for their Backfire bombers in return for the loan !
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  4. #4  
    Senior Member LogansPapa's Avatar
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    Paulson Signals Treasury May Invest Capital in Banks (Update1)

    By Rebecca Christie and Simon Kennedy

    Oct. 9 (Bloomberg) -- Treasury Secretary Henry Paulson signaled the government may invest in banks as the next step in trying to resolve the deepening credit crisis.

    http://www.bloomberg.com/apps/news?p...FE0&refer=home
    At Coretta Scott King's funeral in early 2006, Ethel Kennedy, the widow of Robert Kennedy, leaned over to him and whispered, "The torch is being passed to you." "A chill went up my spine," Obama told an aide. (Newsweek)
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  5. #5  
    Senior Member Rebel Yell's Avatar
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    Quote Originally Posted by LogansPapa View Post
    Paulson Signals Treasury May Invest Capital in Banks (Update1)

    By Rebecca Christie and Simon Kennedy

    Oct. 9 (Bloomberg) -- Treasury Secretary Henry Paulson signaled the government may invest in banks as the next step in trying to resolve the deepening credit crisis.

    http://www.bloomberg.com/apps/news?p...FE0&refer=home
    That was the end game plan from the beginning. I said from the start, this wasn't a bailout, but a buyout.
    I feel that once a black fella has referred to white foks as "honky paleface devil white-trash cracker redneck Caspers," he's abdicated the right to get upset about the "N" word. But that's just me. -- Jim Goad
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