Lawrence Summers

According to Lawrence Summers, Obama has been due take these measures as a lesser evil, to save the system from (free) market of its own excesses. Mr Doom, aka Nouriel Roubini, Chairman of RGE Monitor and Professor of Economics and international business at New York University, predicts that the large U.S. banks break in the next six months and will be nationalized. Said the financial network CNBC, the debate today not turn on whether banking you should or not be nationalised, but in what extent must be, whether total or partial, the measure would be temporary, and lasted the time that takes to US Government clean banks of toxic assets and then sell them to private. In this way, the injection of funds would not be constant and descomprimiria pressure on the budget and the tax burden on taxpayers. The central bank, which is supposed to is the lender of last resort, became the lender of first and only resort!, he said. And predicted that most of the big banks almost all will go bankrupt. We must nationalize before.

It is actually this isn’t as dramatic as it sounds, but that it would be a situation of formality, blanquearia the current situation in which some institutions are already de facto nationalized, such as the Citi or AIG (NYSE:AIG). Achieve generate a financial model solid, stable and clean may just occur when the U.S. Government finished give cold medicines to a patient with pneumonia, and perform major surgery with cleanup of toxic products that generated all this financial meltdown. There is no uniformity of opinion among economists in this regard. When I order an opinion five economists, always receipt five different answers unless one of them is Keynes, in which case the number of different answers invariably rises to six, said Churchill. Sweeping under the carpet or shake it?. Nationalize or break?. While we decide, the world, and especially China, they continue directing their dollars to the U.S., to finance economic rescue subside and injection of funds to U.S. financial institutions in trouble. Very dangerous, the default can be today in any other country – in the developed world.