This link has been bookmarked by 10 people . It was first bookmarked on 10 Oct 2008, by Clay Burell.
-
23 Aug 11
-
20 Dec 08
-
10 Oct 08
-
Clay BurellAnnotated link http://www.diigo.com/bookmark/http%3A%2F%2Fwww.washingtonpost.com%2Fwp-dyn%2Fcontent%2Farticle%2F2008%2F10%2F09%2FAR2008100903425_pf.html
-
The worst financial crisis since the Great Depression is claiming another casualty: American-style capitalism.
Since the 1930s, U.S. banks were the flagships of American economic might, and emulation by other nations of the fiercely free-market financial system in the United States was expected and encouraged. But the market turmoil that is draining the nation's wealth and has upended Wall Street now threatens to put the banks at the heart of the U.S. financial system at least partly in the hands of the government.
The Bush administration is considering a partial nationalization of some banks, buying up a portion of their shares to shore them up and restore confidence as part of the $700 billion government bailout. The notion of government ownership in the financial sector, even as a minority stakeholder, goes against what market purists say they see as the foundation of the American system.
Yet the administration may feel it has no choice. Credit, the lifeblood of capitalism, ceased to flow. An economy based on the free market cannot function that way.
-
Would you like to comment?
Join Diigo for a free account, or sign in if you are already a member.