U.S. Sen. Christopher Dodd has said on a news show to air this weekend that nationalization of the nation's big banks such as Citigroup and Bank of America may be needed for a short time.
And we all know that when government says something is for a short time, such as like a tax, it ends up being permanent. That's why investors have no confidence to invest in markets that would reduce the value of their stock in securities tied to Citigroup and BOA to nothing. And they don't know into which industry the Obama administration will next intervene with taxpayers picking up the bill.
Bloomberg News reports:
Feb. 20 (Bloomberg) -- Senate Banking Committee Chairman Christopher Dodd said banks may have to be nationalized for “a short time” to help lenders such as Citigroup Inc. and Bank of America Corp. survive the worst economic slump in 75 years.
“I don’t welcome that at all, but I could see how it’s possible it may happen,” Dodd said today on Bloomberg Television’s “Political Capital with Al Hunt” to be broadcast this weekend. “I’m concerned that we may end up having to do that, at least for a short time.”
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