Nobel laureate urged U.S. authorities to temporarily nationalize banks
well-known American economist, Nobel laureate Paul Krugman in an article published in The New York Times, called on U.S. authorities to hold an urgent banking reform, the main point of which is the temporary nationalization of the country's largest banks. Writes about this today, RBC daily.
Article professor at Princeton University, who, according to magazine Forbes, ranked third in the list of most influential guru of the U.S. business community, was a response to the scandals connected with the plans of U.S. corporations (especially financial giant Goldman Sachs) to spend on salaries and bonuses to its top managers to a record amount - 140 billion dollars in banks such extravagance explain the desire to retain professional staff and a positive financial statements for the year.
However, according to Krugman, if the largest investment companies in the U.S. the most difficult times are behind us, the main commercial banks are definitely not soon recover from the crisis. The key for the U.S. economy of the private lending market today is still too weak, - said AITE Group senior analyst Nancy Atkinson.
Paul Krugman criticized the activities of the economic team of President Barack Obama, who believes that the banking system will adjust itself. According to Nobel laureate, because of the power lost when it was possible to correct the situation on Wall Street. This administration is unhappy with the U.S. that have received state aid banks actively oppose financial reforms. But because such a soft policy on anything else they should not have expected, - he said.
According to RBC daily expert at the London School of Economics, Kevin Young, in the words of Paul Krugman is the truth. He believes that the nationalization of troubled banks would help them to attract additional capital. However, full confidence that the U.S. authorities could effectively transform the private banks in the state, he does not. The expert noted that the State must take other measures to support the banking sector, for example, to conduct a program of buying up the bad assets. The main thing now for the authorities - not to make too sudden movements, - he said.
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