Roubini on Bloomberg: Bank Nationalism Is Inevitable

Economic crisis Cassandra Nouriel Roubini has given an interview with Bloomberg. The interview airs at 2 pm and, according to the channel, Roubini offers another prediction about the crisis: bank nationalization by the United States government is inevitable!

While this conversation has been ongoing in the UK, the idea of such a drastic maneuver -- which is generally conceded as alien to American politics -- is considered by an increasingly influential crowd as the best possible option.

UPDATE: February 17, 2009. From The Financial Times:

"The US government may have to nationalise some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman, has told the Financial Times:

"In an interview, Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.

"'It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,' he said. 'I understand that once in a hundred years this is what you do.'

"Mr Greenspan’s comments capped a frenetic day in which policymakers across the political spectrum appeared to be moving towards accepting some form of bank nationalisation."

More here.