Nationalizing Troubled Banks - not such a bad idea?

At first glance, the thought of nationalizing troubled banks (namely BankofAmerica and CitiGroup) sounds ludicrous, but after some careful consideration, that may be exactly what we need to do, to get rid of them for good, nice and fast.

We have all been to the DMV before, perhaps interfaced with the IRS and other govt agencies and services. We are all accustomed to the "govt service" that we are forced to deal with, when interfacing with govt entities and services. Everything from the long lines, extremely slow and poor service makes us all cringe anytime we have to deal with them. Picture for a moment, the same style service and operation at your nearest bank, something you deal with daily, weekly or monthly.

You are probably saying to yourself, " no way! I would immediately withdraw my money and place it someplace else.. non govt owned." Multiply that logic x 100, x 1000 x 1,000,000 people in the exact same position you are in.

That's precisely what would happen, if the govt were to nationalize the troubled banks. A bank is only as good as the deposits it holds. Without any deposits, the bank is worthless. A nationalized bank, would literally cause a run on the bank, turning that bad bank into a non-bank and wiping them out for good. Together, the govt, their decision to nationalize the bank and the useless management struture that is still in place would give us exactly what we have been waiting for. It would do away with these troubled, worthless banks in a much more effective way.

We all know the govt is not capable of running anything. We saw what happened with the "GSE's" Fannie Mae, Freddie Mac. They couldn't even run a profitable company.. and we are to expect them to turnaround a bad bank and make it profitable? I'm sure you are laughing just as I am.

I think that's what we really need. Bad bank nationalization. Sure, it wipes out the common stock holders, perhaps even the preferred and bond holders.. but it sure beats pouring trillions more into the system, realizing it didn't work, and wiping out the tax payers in the process.