It's time for the US taxpayer to take on the banks, fire and prosecute their executives, recapitalize them, and move on. And maybe one day sell them off at a profit.
It's time for us to arrest the guilty (hello Angelo Mozilo), seize their ill-gotten gains, and move on.
It's time for us to admit what we all know is true. The banks in the United States are insolvent. They got that way because of lack of regulation, a bastardization of the tax code that over-encouraged home purchases, the incompetence and corruption of the auditors and ratings agencies and FDIC, a gaming of the system by the investment banks, appraisers, realtors and mortgage brokers, and outright bribery of the US Congress.
So let's admit what happened, take over the banks, fire and arrest the executives and associated guilty parties, and move on. Exchange capital for equity, wipe out the shareholders, replace the leadership, and move on.
And yes, this will happen. Whether you want it or not. We either recapitalize them, or they fail. It's only a question of when.
It hath been foretold.
October 10, 2008
You knew this day would come. HousingPANIC calls on the Bush Administration to nationalize and recapitalize the banks
Posted by blogger at 10/10/2008