Frustrating as it is, it looks like we’re still headed down the path of semi-nationalized banks. It’s the worst of all possible worlds, with heavy political interference in banking and none of the benefits of market discipline or creating healthy banks from the ashes of the failures. Now the folks at Funny or Die have created a hilarious video showing just what Americans can expect from this situation.
(Keep in mind that most advocates of “nationalization” are actually calling for the opposite of what this video shows. We don’t want the government running the banks. We want the assets of failed banks seized and the good assets of banks, especially the deposits, quickly sold off to healthy institutions. That’s why we’ve been calling it “pre-privitization.”)
There’s a lot of dirty language in the video so it’s probably not safe for work…especially if you work at Citi.