Tuesday, February 3, 2009

Does Obama have the political balls to nationalize the banks?

During the campaign, Sarah Palin scared legions of low-information voters with red baiting. The ominous words "Experimenting with Socialism" triggers mental images of Soviet style Communism, even in the minds of those who know better.

In reality, we do have some socialist practices right here in the States... Social Security, for example. Unfortunately years of cold-war propaganda programming may be shooting us in the foot. In essence, if John Wayne may have fought in a movie, it is out... WAY OUT. And it may just be required to do this stimulus right.

We have been seeing plenty about the banks lately we don't like. They don't seem to be able to keep themselves out of hot water, and every day it's keeps simmering, presenting the nation more examples of outrageous spending and poor judgement. Many voices, including Paul Krugman in his latest op-ed are screaming for nationalization of the banks for a limited amount of time.

And yet... Obama and his brain trust seems determined to avoid this. But why? Is it because it's the wrong thing to do, or because it's politically risky? Is he afraid the GOP will gain further traction by slamming nationalization as "experimenting with Socialism?"

Perhaps it is politically disasterous, but I agree with blogger Bob Cesca when he states "Nationalizing the banks would be an enormous political risk. However, if it's going to be done anyway, sooner is way, way, way better than later."

In reality, the more this debate goes on, the more the GOP will be able to spin it as socialist or unrestrained spending, and the stimulus will continue to get watered down. I hope Obama will get this under control and push it through soon, and have the political balls to do what he has to. He didn't ask for this when he ran, but the economy may be the make or break for his first year, if not his Presidency.

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