The next failing bank that needs a bailout should instead be taken over by the state or Feds. At least until it can be stabilized and sold. The same for auto and solar companies.
By Jack E. Lohman
As a former business owner, that’s more than I would have been afforded. I’d have had no choice but to close the company and walk the streets with the rest of my employees.
And incidentally, it’s not a matter IF, it’s when. Jamie Dimon at JPMorgan has shown us that the last bailout was a waste of education. Let’s do it right before we have total collapse.
So when the next bank fails…
Let the state or Feds take it over. If we taxpayers are going to fund the failure, we sure don’t want to reward the old management and give them another chance to dip into our pockets. They should be locked out of future management, and perhaps even locked up.
And frankly, with the threat of losing control over their heads, there’s likely to be fewer bailouts!!!
North Dakota has a public option bank and it is working beautifully, with private banks competing. See it here: “Public Banking — it already works in the United States and is catching on! 18 States now scoping it out.”
Why stop there?
Indeed having a publicly-owned (??) post office has kept free-market delivery services (like FedEx and UPS) more efficient, though the post office is clearly a bad example.
Not only has it been devastated by the Internet, but it has faced the wrath of corrupt politicians on the payroll of private industry, and doing everything possible to force them out of business. Like demanding that they put away billions of dollars to fund their retirement system for the next 75 years. (Could FedEx and UPS survive that?)
Of course the USPS employee union has not helped matters, demanding that ineffective post offices not be closed for fear of massive layoffs (both of which are direly needed if the company — and jobs — are to survive).
How about a public-option oil company?
Can you imagine how it would be if the Fed (US taxpayers!) had it’s own public-option oil company competing with OPEC and other Arabian suppliers, and kept our gas at $2.50 per gallon? Think of the billions of dollars that would NOT be sent to the middle east but instead going into the US economy!!!
But wait, public entities can’t give campaign cash!!!
Well, that likely eliminates support from Governor Scott Walker and the like, though if he and other politicians were smart they’d jump all over this. Especially Republicans. There could be no better way to win the support of voters than to limit the power of crony-capitalism, and make free-market capitalism real again.
Any compulsory industry that cannot treat the public fairly and legally, without ripping them off, should lose its exclusivity. And for you Wall Street prosecutors, fines less than the booty simply encourage more crimes. Get a calculator!