Bank Nationalization

[ag]

What if the US had somehow nationalized major banks during the recession? What would have likely happened?

The recession would become deeper and longer. The government would assume the banks' obligations (sharp expansion of public debt) and sell the banks eventually clean and pretty to government-favored insiders. The taxpayers would wind up paying for that. Has been tried many times in other countries, and that is the usual result.

[ag]

How did it go for North Dakota?

http://en.wikipedia.org/wiki/Bank_of_North_Dakota

It was a long time ago but it seems like conservatives are fine with it today. Of course if Obama did so it would be another story.

The problem is not having an occasional state-owned bank. It makes very little difference in the life of North Dakota - and no difference elsewhere. As a relict of old debates it is, actually, quite cute.

[ag]

No country bumpkin would trust giving their money to a public bank. The number of militias would double. Obama probably would have lost re-election.

Those, probably, would not be among the 100 most significant consequences of it, but, ok.

[ag]

Examine the mandates and requirement Congress places on banks. The recession would have been over in 5 minutes

You are not even right on that. The recession would take a lot longer to get out of.