Greenspan Suggests Nationalising Banks

Nationalizing troubled banks may be the only answer

"It may be necessary to temporarily nationalize some banks in order to facilitate a swift and orderly restructuring," Greenspan, the long-revered sage of free-market theory, told London's Financial Times in an interview published Wednesday. "I understand that once in a hundred years this is what you do."

When Bernanke was asked whether he shared his predecessor's views, he didn't distance himself from them during a question session Wednesday at the National Press Club. He answered as if nationalization were inevitable, after first listing some of the problems it would entail.

February 19, 2009

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