Chavez would expropriate banks in crisis

“If something similar comes to pass in Venezuela, you should not have the slightest doubt that I won’t give a penny to the banks – I’ll expropriate them,” said Mr Chavez.

But then Venezuela would have to pump billions into the banks to keep them from collapsing. So how is this different from bailing them out?

He added however, that so far the global banking crisis has not affected Venezuela’s economy.

The price of oil has dropped substantially because of the credit crisis and this has already directly affected Venezuela who gets the bulk of their revenue from oil.

I think Chavez needs to take a refresher course in Economics 101.

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