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Central Banking or Nationalized Banks?

In the aftermath of the bubble burst in '08, Iceland took a radically different path than the United States after their financial crisis and nationalized the banks, threw some people responsible for the crash in jail and bailed out the homeowners instead of worrying about only bailing out the banks. And now they're coming back and their economy is growing again... http://goo.gl/QuKGA

When the banks in Norway declined in 1992, the government simply nationalized them (instead of bailing them out leaving the tax payer to pay the bill) which gave the banking business a breather and was ultimately beneficial for its citizens, because the banking business returned to more traditional banking values, though it only was for a short period of time.

So, in terms of public prosperity is there any merit left to keep the current central banking system, with many private banks and one central bank, instead of nationalized banks?

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    Oct 29 2012: Is your question whether a country's central bank which controls money supply as well as the interest rates other banks pay should be government run or entirely privatized?
    • Oct 29 2012: I believe that what he asks is which would be the better of these two systems:

      1) the current central banking system with many private banks and one central bank per country

      2) a system with only nationalized banks
      • Oct 30 2012: This is exactly what I mean. Thank you for articulating it for me, John. Please forgive me while I shamelessly steal your comment including it in my description!
      • Nov 1 2012: Why not a mixture? I belong to a City Credit Union. It's not government run, and its not Private. It's similiar to an electric coop. Seems like the best of both worlds..
        • Nov 10 2012: Is it owned by the municipality or the is it just a credit union (owned by members) with the word "City" glued to it? In the former case it's government run (a municipality is a government), in the latter case it's privately run.

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