Trust Me

Decisions, decisions. Uncle Sam or the Robber Barons, whom do you trust? Don’t answer too quickly. The crisis we face is far too dangerous for us to continue playing games. It is far too serious for us to base all of our decisions on myths.

Capitalism, socialism, communism, mercantilism, all isms are juvenile attempts at providing grossly simplified answers to extremely complex problems. It is way past time for us to grow up.

All of those words carry heavy emotional freight. They generate unwarranted devotion and unfounded fears. We need facts not fears. We need so look at our problems with clear eyes. We are only going to suffer whenever put all of our chips on concepts that have proven wrong, time and time again.

Of all the major countries in the world, India’s banking system stands out. It is not experiencing the problems that we are all too familiar with. India depends primarily on nationalized banks. Privately-owned banks have 18.2% of all banking assets. Foreign banks own 6.5%. Apparently government can operate banks better than private interests. Some of the larger privately held banks are experiencing significant difficulties.

Closer to home we need to consider North Dakota. That state government owns banks. Strangely, their bank isn’t having the problems of Wall Street, Bank of America, CitiGroup and other major private banks.

The government did an adequate job of managing WWII. They even micromanaged most corporations during that period. Compare that to Blackwater and Halliburton. By the way, how does private industry lose 200,000 AK-47s, 150,000 pistols, 50,000 bullet proof vests, a million barrels of oil and $12 billion dollars in cash? At least 16 of our troops died while taking a shower in a facility constructed by a private corporation.

TVA used to be a great example of how government could do what privateers couldn’t. They went off course when politicians who bragged of their contempt of government took control. They put in management lured from private industry and paid at comparable levels.

Can you find a health insurance company that spends only 1.8% on administration, as does Medicare?

I am prepared to admit that government-run projects have been screwed up. The fact, however, is that usually happens when government haters get in charge. They eliminate or ignore oversight, install their unqualified friends (Good job there Brownie), or work for lobbyists rather than their constituents.

Those who hate the government are ideologues. They are devotees of an ism. They claim to fear government. How can that be when they exercise such control of government? How can that be when they suck out so much for themselves, their friends and their owners? No, they do not fear government. Spit on any politician who make that claim. They are contemptible.

Back to the banking system. Nationalizing a bank is not something to be feared. It works in India. It works in North Dakota. It can work here. We can let the bankers’ precious market play its role. Let those zombie banks fail. Nationalize some, to create a nationwide bank.

Sell the assets of the others. Toughen the regulations. Enforce the regulations and let those who can and want remain as private banks. Take up a collection and send flowers to the former executives of those banks that were too big to fail.

Tagged as: bank, baron, blackwater, brownie, citi, dakota, halliburton, india, lehman, medicare, nationalize, robber, tva