Krugman 100% Sure US Financial System Will Be Partially Nationalized
October 09 2008 / by John Heylin
Category: Economics Year: 2008 Rating: 8 Hot
New York Times columnist Paul Krugman recently went on the “Rachel Maddow Show” and mentioned that “what always happens in financial crises is a partial nationalization – partial and temporary nationalization of the financial system. And, that is – you know and, I predict with almost 100-percent confidence that’s how it will end.”
So while the Times laments that this will be the end of the America we all know and the beginning of a French-like socialized society, it’s rather scary to think that no one really knows what the $700 billion dollar bailout is supposed to do.
This opens a lot of questions that need to be answered. What was the bailout supposed to do? Why did they pass it? What could nationalization of the financial system mean for US citizens? Global impacts?
It will be interesting to see if the crisis we are facing will be put off till the next administration or if they will try and fix the problem now.
Comment Thread (2 Responses)
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Sure enough:
http://money.cnn.com/2008/10/09/news/economy/treasury_bank_investments/index.htm?cnn=yes
Posted by: Alvis Brigis October 10, 2008
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My head is still spinning from all of this. I guess I am not the only one confused if Krugman, and apparently the politicians don’t know how the bailout is supposed to help.
Posted by: Mielle Sullivan October 10, 2008
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