In recent weeks there has been a plethora of pundits that have been calling the bank thing a nationalization…it is not…..so please stop calling it that.
What is actually occurring is that the government is recapitalizing the industry. That is an infusion of new funds into the daily operation of the companies.
The government intervenes to recapitalize a bank by giving cash in exchange for some form of guarantee, such as a stake in the company. Taxpayers can then benefit if the bank recovers.
Regardless of what the mindless ones say, the banks have NOT been nationalized just recapitalized by the government….it is not socialism at work….it is capitalism!
Here is a phrase that I heard… if it is a small bank, it is called receivership. If it is a large bank, it is called nationalization. Don’t know who to attribute that to, I live on the border between two radio stations on the same channel and I heard that through the static.
It is always a case of semantics…..just like everything political…open to interpretation.