The dead must be buried ... What banks in trouble?

The dead must be buried ... What about banks in trouble? Buenos Aires, Argentina March 10, 2009 Samuel Beckett before he died with great anger said: "It's almost impossible today in Europe die with dignity, unless you're poor." If it had been dead for twenty years, would cross the Atlantic and that's not possible. U.S. banks that should fail, not to die with dignity, but to live unworthily, with the U.S. government balance sheets cleansed of toxic spawn recklessly structured themselves. But Republicans got fed up and demand the closure of troubled banks . Republican Senators John McCain and Richard Shelby said on the weekend that the U.S. government should allow some of the big U.S. banks close their doors, while demanding the bankruptcy of General Motors (NYSE: GM), another powerful vacuum cleaner. Shelby, the ranking Republican on the Senate Banking Committee, told U.S. television network ABC: "Close it, allow it to stop doing business" and concluded, "If there are dead to bury." He did not mention what would be the entities that should shut his opinion, but appointed Citigroup (NYSE: C) because it was always "problematic."



Senator John McCain, former rival Barack Obama in U.S. presidential elections, said banks should close inefficient, and attacked General Motors, saying that the best thing that could happen is bankruptcy, to gain more strength and become in "stronger, better and in a smaller version." Bankruptcy enables a company to reorganize their debts to creditors and get time to restructure and rebuild their balance sheets. But the Obama encourages world governments to follow suit and extend more funds into the economy in order to boost demand and leave behind the recession. According to Lawrence Summers, Obama had to take such measures as the lesser evil, for "" save the system (free) market for its own excesses. "" Mr. Doom ", alias" Nouriel Roubini, "Chairman of RGE Monitor and professor of economics and international business at the University of New York, predicts that the big U.S. banks fail in the next six months and will be nationalized. As stated in the financial network CNBC, the debate today revolves not whether or not banks should be nationalized, but to what extent it should be, whether in whole or in part, the measure would be temporary, and last the time it takes the U.S. government to clean up banks toxic assets and then sell them to private.

Thus, the injection of funds would not be constant and descomprimiría pressure on the budget and the tax burden on taxpayers. "The central bank is supposed to be the lender of last resort, became the lender of first and last instance", he said. And he predicted that "most of the big banks, nearly all-state will enter of bankruptcy. " You have to nationalize before. This actually is not as dramatic as it sounds, but move to a situation of formality, blanquearía the current situation in which some institutions are already de facto nationalized, as AIG (NYSE: AIG) or Citi. Achieve generate a financial model, stable and clean may just happen when the U.S. government done to give cold medicine to a patient with pneumonia, and perform major surgery to produce toxic cleaning that generated all this financial meltdown. There is no uniformity of opinion among economists on the matter. "When I ask five economists opinion, I always get five different answers ... except if one of them is Keynes, in which case the number of different responses invariably is six," said Churchill. ¿Swept under the carpet or shaking ?.

¿Nationalize or break?. As we decided, the world, especially China, continue directing their dollars to the U.S., financing the economic bailout megaplans injection of funds into U.S. financial institutions in trouble. Very dangerous, the default may be given today in any other country in the developed world.