The Wave of Nationalizations Continues

Nationalizations.

For decades the word nationalization was closely associated with communist regimes and dictatorships. For instance, Egypt nationalized the Suez canal, or Venezuela recently nationalized some key segments of the economy. We here in America, the land of the free do not use that N word. We choose some carefully crafted words to describe the government nationalization of AIG, Fannie and Freddie. Can anyone tell me the difference between a government takeover and a nationalization? In both cases, the taxpayers are on the hook.

Sad Situation.

To show how the administration is behaving, even the nationalization of AIG did nothing to calm the market simply because the system is so unstable. There are a lot of weak companies out there looking for government's intervention. It is not just the financial sector that is coming in to join the soup line. Detroit is also asking for help. Are we going to nationalize GM, Ford and Chrysler? Doing so will create the second Volkswagen, the people's car since the people will pay for the subsidies.

No End in Sight.

At the going rate, considering that we are taking water on all sides, the clear option is to nationalize the whole industry and let the performing sectors foot the bill for the non performing ones. This at least will take the taxpayers off the hook.
Instead of letting the market decide who stays and who goes, the bureaucrats are picking the the winners and the losers. All this is taking place under a republican administration.