What McCain proposes seems similar to what is already in place in Japan. However, the government here certainly didn't nationalize any insurance companies that I know of during that crisis in the late 90s. It nationalized banks. A few observations from what I noticed of the Japanese experience:
1. Nationalization was limited to duff banks, most notably credit banks. 2. Much of the crisis was contrived; banks were forced into nationalized status because of failures to meet new international standards. They weren't really bankrupt in most cases. 3. The Japanese government seems to have miscalculated about the willingness even eagerness with which predatory US capital (private equity, investment banks, listed financial conglomerates like GE, etc) moved in to take over real estate holdings, loan portfolios, soon-profitable banks (once capital ratios were boosted), etc. 4. This also went hand in hand with another contrived crisis. The government increased the cost of national health insurance cover while decreasing the extent of that cover. So this created a huge market in supplemental coverage got from American and European insurance giants, who were given access to this market. For example, AIG. The biggest question I have about this governmental role in the US markets is HOW ARE THEY GOING TO FLOAT THAT MUCH MORE DEBT? W. Europe, E. Asia, and the oil exporting states are going to have to buy one hell of a lot more US bonds. The knock on effects are going to knock the world market for years to come. CJ _______________________________________________ Marxism-Thaxis mailing list Marxism-Thaxis@lists.econ.utah.edu To change your options or unsubscribe go to: http://lists.econ.utah.edu/mailman/listinfo/marxism-thaxis