Tuesday, 3 March 2009

Reuters Columnist James Saft and His View on Bank Nationalisations in the U.S.

Here's the man

This is James Saft's column for this week.

''Another week, another set of protestations that U.S. banks will remain in private hands, apparently almost regardless of the consequences. It is clear that nationalization violates a sacred value for U.S. policymakers, or perhaps they believe it to be a sacred value held by voters. As we know from behavioral economics, when people are confronted by a conflict between material advantage and their ideas of the sacred, they tend to opt surprisingly often for the sacred ...´´

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1 comment:

  1. He makes an interesting point, but I'm not convinced. Just because the FDIC does it now doesn't mean it is right or appropriate for the entire banking system. I wonder if he's ever lived in a country with a state-owned banking system. Maybe he has and maybe I'm wrong, but I keep picturing in my mind Banco do Brasil circa 1994, and it's not a pretty picture.