PoliticsRx Political Prescription

According to FT.com, some lawmakers are considering the nationalization of some banks as a viable option.

President Obama seems to be favoring the Swedish model, which Sweden followed in the 90s.  Under this model, the bank(s) are nationalized, balance sheets are cleaned up, and the bank is auctioned back to the public.

One alternative to the Swedish method was that used by Japan, which critics argue delayed their recovery by repeatedly throwing money at the banks which could not get a handle on their problems.  Some say the US is currently headed in this direction.

Read More: FT.com / US / Politics & Foreign policy – Bank nationalisation gains ground with Republicans.

Posted under Government Bailout, Stimulus

In an effort to “set the floor” on the housing crisis, Obama has unveiled a $75 billion housing relief program, stating that “All of us are paying a price for this home mortgage crisis”.

Geithner states the rules will be published on March 4th, and asserts quick results thereafter.

Read More: Obama unveils $75B mortgage relief plan – Mortgage Mess- msnbc.com.

Posted under Government Bailout, Stimulus

More transparency is the name of the game!  Looks like Geithner has hit the ground running, with pledges to limit lobbying by banks, and publicizing the contracts entered into by the banks receiving bailout funds.

Read More: Administration says big reforms coming to bailout – Yahoo! Finance.

Posted under Government Bailout, Keeping Informed