Interesting commentary at Jesse’s Cafe Americain this morning regarding when (not if) the major US banks will be nationalized. While not naming names, the author indicates that the major problem is with the big banks (Citibank, Bank of America, Chase, etc.), and until those banks are truly inspected and cleaned out, we will continue throwing bad money after worse money.
The big banks will, of course, claim this will lead to economic armageddon, and it ,may do so for them personally I suppose. Much like an overgrown forest, though, you need a big fire once in a while to clear out the dead wood and create the opportunities for new growth to take root. Won’t be pretty or fun, but it is necessary.