What,Bank,Nationalization,and, finance, share, loan What Is Bank Nationalization and Will It Help or Hurt?
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
Here's where we are today with the stock market and the economy:Last week, both the Dow Jones Industrial Average and the Dow Transports fell below their November 2008 low. The S&P500, the Russell 2000 and the NASDAQ are still five percent to 10% above their November lows and have yet to break down. The Federal Reserve and the U.S. Federal Government are in an all-out war -- this time against the economy. I believe the Fed will do everything in its power to prevent stock deflation. I see the government pumping more and more money into the economy.In my lifetime, I have never seen so many people -- analysts, economists, governments, consumers and investors -- so negative about the economy. (All this pessimism is actually good for stocks. But we'll leave that discussion for another day.)The big story this morning is the nationalization of major American banks, namely Citigroup, Inc. (NYSE/C) and Bank of America Corporation (NYSE/BAC). To put it into the most basic terms, the nationalization of a bank means the government takes over a bank and runs it -- the bank becomes part of the government. Rumors have it that the only way for the big banks to survive is to nationalize them. The nationalization of a bank the size of Citigroup or Bank of America, which we have never had in the U.S., presents a slew of new problems, most importantly competition. Banks need a level playing field, so they compete against each other for customers. Should the government take over a major bank, the government would be inclined to get that bank lending to consumers and business, most likely at lower rates. This would not be fair competition to the other banks. What's next after that? Major corporations hiring lobby groups to lobby Washington for loans from a nationalized bank?Many well-known economists are coming out and saying that the nationalization of some U.S. banks is the only way to plug the "black hole" of bad assets these banks have.I'd like to put a different spin on this. We are already paying for the ongoing wars in Afghanistan and Iraq. The cost of the economic crisis bailout has been in the trillions. How much will nationalization of the banks cost? My real question is: just how much more debt can the U.S. government take on? At a certain point, are we not using good money to chase bad money?The more debt the U.S. takes on, the more stress there is on the value of the U.S. dollar. It is no coincidence that gold bullion flew past the $1,000-per-ounce level last week.Profit Confidential---http://www.profitconfidential.com/LOMBARDI PUBLISHING CORPORATIONNews, Analysis, and Information Services Since 1986.One Million Customers in 141 Countries.Lombardi Publishing CorporationFinancial Publications Division350 Fifth Avenue, Suite 3304New York, NY 10118-3304---Copyright 2008; Lombardi Publishing Corporation. All rights reserved. No part of this e-newsletter may be used or reproduced in any manner or means, including print, electronic, mechanical, or by any information storage and retrieval system whatsoever, without written permission from the copyright holder.
What,Bank,Nationalization,and,