Charles Schumer Dem Senator NY wants the US to purchase equity stakes in various banks s= L + OE. imilar to a plan adopted or proposed by Britain and like the one in the previous post on Iceland.
What is worrying me about all this?
1. We have lost trillions of dollars of wealth in a short period of time in the stock market world wide, but the debts of the world remain. The basic equation of A = L + OE. is way down on A and therefore OE but not on L, and that is the problem.
2. the US government now controls law enforcement through Homeland Security with virtual control over local law enforcement.
3. The collapse, actually engineered by government as it let FNM FRE Salle Mae and then the banks make these loans, now is taking over those very institutions, only Goldman and perhaps Morgan Stanley are left among brokerages. Paulson yesterday said not all banks will make it, well no wonder they are reluctant to loan money for fear that if not paid back, they fail.
George Orwell wrote the novel 1984 decades before that. It seems to me that this grab for power will be difficult if not impossible to reverse. Point being, if you do not like your bank you can switch, if the govt controls all of them, who will you complain to?
Professor Elam 
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