In all honesty, Senator Lindsey Graham is right, if we put out banks under a stress test now, they would fail. There is so much bad paper, toxic assets from the housing market on these banks books, the continuing of throwing good money to bad will not help. The smile on Rep. Maxine Waters face says it all, "We have come a long way." Folks, the financial crisis is not fake it is real, we are still seeing upwards of 10,000 foreclosed homes a day, these banks will not survive letting this continue.
In a gloomy segment about the financial sector on ABC'S This Week, two self-avowed fiscal conservatives said that the U.S. Government should at least consider nationalizing the country's banking system as a means of moving beyond the current lending crisis.
"This idea of nationalizing banks is not comfortable," said Sen. Lindsey Graham (R-SC). "But I think we've got so many toxic assets spread throughout the banking and financial community, throughout the world, that we're going to have to do something that no one ever envisioned a year ago, no one likes. To me, banking and housing are the root cause of this problem. I'm very much afraid any program to salvage the banks is going to require the government... I would not take off the idea of nationalizing the banks."
The remark prompted a bewildered smile of sorts from fellow panelist Maxine Waters (D-CA) who said, to no one in particular, "We have come a long way." read more here....