Warning About Money Questions

Mahalo Answers is a great place to start your research into Money questions, but it's not the final answer.

Mahalo Answers is not a substitute for informed professional advice. If you desire or require professional advice, please consult a qualified provider who is licensed in your state or country. You should always seek independent professional advice before acting on any opinion, advice, or information available on Mahalo Answers.

Next Question

Answered Question

davepamn

M¢25 Funded By Mahalo ? | February 20, 2009 08:35 PM

Why does Asia fear nationalization when both Citigroup and Bank of America say, no to nationalization?

Is Asia looking at Long Term Capital management and saying "To big too fail means all deposits and assets will belong to the government?"

Citigroup statements suggest it does not intend or want to be nationalized.

Is the sell off a reaction to evaporating equity by Asian stock holders?

Interesting Question? Yes (0) No (0)

In Money |
|
Report |
Share

RSS

Best Answer Chosen by Asker

deanmachin...

February 20, 2009 11:55 PM

I'm sure Citi and BOA do not prefer to nationalize, but at some point the government may have to say we can't bail you out on this, or at least not right now. If that happens and the government recommends some kind of short-term nationalization, I'm not sure what the banks can do about it.

A Guardian article mentioned that Asian shareholders fear being "wiped out" if U.S. banks are nationalized. This angle to the story is still new, so I can only guess that the Asian financial community, and probably financial communities around the world, might fear that Americans' money being controlled by the American government might give the government too much power? Not really sure, but certainly the crisis is being monitored carefully in Asia and how their stock market fares will unfortunately be affected by America's financial status.
Source(s):
http://www.nytimes.com/2009/02/21/business/economy/21markets.html?ref=busin...
http://www.guardian.co.uk/business/feedarticle/8368149

Asker's Rating:

• Do you interpret the bailout as a purchase of the bank or a loan? For example, Citigroup gave the US Treasury, $7 billion in stock. Does that action imply the bank is nationalizing? I don't see a move towards nationalization. I see the banks seeing off assets and debt reducing making them good

Helpful Answer?

(1)

(0) Tip deanmachine777 for this answer

Permalink | Report

Answer this Question

Ask a Question

Top of Page

Buy Mahalo Dollars with Credit Card or PayPal

Top Members

This Week All Time

buddawiggi
2nd Degree Black Belt
26830 Points
M$782.84 Earned
kty2777
Purple Belt with a Brown Tip
5313 Points
M$198.17 Earned
opher
Purple Belt
4027 Points
M$170.67 Earned

See All

Most Popular Tags

mahalo(1584)

twitter(944)

iphone(460)

music(458)

google(352)

food(313)

internet(303)

online(292)

beer(278)

money(262)

movies(254)

facebook(252)

apple(249)

aotd(235)

answers(220)

health(217)

dog(202)

video(201)

free(201)

windows(196)

See All

Welcome New Members

fb_1146321853, November 25, 2009 08:40 PM
margiedieudonne, November 25, 2009 08:38 PM
tsnap, November 25, 2009 08:31 PM
vaniamelamed, November 25, 2009 08:24 PM
scottklein, November 25, 2009 08:18 PM

Mahalo Dollars are the currency of Mahalo Answers.

Each Mahalo Dollar costs $1.

Once you earn more than 40 Mahalo Dollars, you can request to be paid via PayPal. Each Mahalo Dollar is currently worth $0.75 when paid out via PayPal. Learn More