For those of you who live in the United States:
Let's suppose that a national referendum were held next week. You could vote for or against the following proposed action by the US Government:
The US Government will take control of 20 of the 50 largest US regional banks which have become insolvent due to overextension of credit to subprime borrowers. All shareholders in these banks will lose 100% of their investment. The government will keep these banks' doors open. All deposits up to $200,000 (twice the current amount) will be guaranteed. All other deposits above $200,000 will be wiped out.
Would you vote for that?
How serious do you believe the current economic crisis to be?
Let's add one line to the law, and now think about your answer:
In addition to rescuing these banks through nationalization, the US Government will honor severance packages to bank executives who lose their jobs as part of the process; this includes honoring and paying out as much as $50 million to CEOs of these banks.
Now what?
