Thursday, October 16, 2008

Don Paulson Way

Michael Corleone in the classic Godfather once said:
I'll make him an offer he can't refuse. You see, Johnny, we feel that entertainment is going to be a big factor in drawing gamblers into the casinos.
Last Monday, I can imagine Treasury Secretary told the nine US largest bank's executives:
I'll make you an offer you can't refuse. You see, folks, we feel that banking is going to be a big factor in drawing the economy out of the depression.
By that, the US effectively partially nationalize their banking system. How cool (and scary) it is.

But how can he make sure that they will lend the capital they just got? Another mafia-way?


  1. I love your comparison of Paulson and Don Corleone. But I don't share your fear he is nationalizing banks.

    As a matter of fact he doesn't, but he should. Because both the people in charge ánd the system are corrupted.

    But his approach to the financial crisis still is providing taxpayer's money to bail bankers out. He is not nationalizing, but allowing as much as possible his Wallstreet cronies to save their asses.

    I should say: nationalize, regulate very strictly in the old fashioned solid banking ways, fire the culprits and make banking a dull public service. Maybe he should ask Nicolas Sarkozy ( a converted former firm believer in neo liberalism) how to handle the financial and economical crises.

    (Btw: only today the news surfaced that bankers even now,in this catastrophic year, endowed themselves with billions of dollars. Quote from The Quardian of today:
    "Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned".)

  2. it wasn't michael corleone who made the was his father, vito corleone....

    the statement was about vito's godchild, johnny fontane's west coast venture