There has been much talk about what to do with the banking industry now that Bank of America and Citigroup are reporting large losses and may need additional assistance from the government. Should the government take over the banking industry as we are seeing in the U.K. or is there a better way of dealing with the problem? For the banks to survive and consequently the economy and real estate we need to deal once and for all with the substantial losses with our mortgages and all the mortgage backed assets that use mortgages for their underlying value. The TARP fund was created to remove these assets from the marketplace and that never took place. The banks were given the funds instead and never used any of the money to create loans. So now we are left to ask would the governement do a better job at running the banks? As opposed to nationalization, one way to deal with this crisis would be to finally remove the toxic assets from the marketplace, require that taxpayers money is used to create loans and regulate the industry to make sure that banks are using our taxpayer monies to stimulate the econonmy as opposed to exorbitant bonsus, retreats, trips, office remodeling etc. Until we finally deal with the root of the problem continuing to just throw money at it won't resolve anything.
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