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# Political Activist: Given the current economic state, the U.S. governm

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Re: Political Activist: Given the current economic state, the U.S. governm [#permalink]
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Bunuel wrote:
Political Activist: Given the current economic state, the U.S. government should strongly consider nationalizing some banks. The recent economic situation has become so dire that leaving the banks private will soon be academic. International law requires that when a government nationalizes the bank, it must compensate the owner for the full value of the assets that are assumed. The recent inflow of federal money into the majority of banks in this country, however, means that the government has basically compensated the owners, and official nationalization is simply the next logical step so that the banks are fully protected under the U.S. government.

Which of the following most undermines the argument that the political activist makes in the passage above?

(A) The voters in the U.S. are still divided on the issue of nationalization, and there does not seem to be enough support to merit it.

(B) A small percentage of banks in the U.S. are still solvent and have not received federal funding.

(C) The federal funding that the banks in the U.S. have received has not entirely covered the debts that the banks now hold on the account books.

(D) The U.S. government is heavily in debt to other nations, and the nationalized banks in the U.S. might represent necessary collateral to pay off that debt.

(E) The nationalization of several banks in the United Kingdom was not as successful as the government had hoped it would be.

Only C and D are enticing, C is more if someone misread/overread the passage. I chose C by making a mistake of simply choosing it and falling in love with it.
After analysing i see that D is more a straightforward choice, forget POE. If US govt. is itself in debt how can a debt be used as collateral, eventually how can banks be fully protected. So, the conclusion that official nationalization of some banks fully protects falls apart.
In C, on the other hand, 'banks' word is used twice. Does it stand to same ones? Under timed condition it may look so but they might different. Let's say there are 100 out of which 80 require funding, which hold some debt. Govt. funded these 80 banks but this funding might not fully cover debt of 100 banks. This might look going into the nitty-gritty unnecessarily but a possibility. However, looking C this way makes us loose the core of the argument sticking to which is more important.
Finally, even if it is so that entire debt is not covered how does this weakens the passage's argument - are they(80 banks) protected under US govt?

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Re: Political Activist: Given the current economic state, the U.S. governm [#permalink]
Bunuel wrote:
Political Activist: Given the current economic state, the U.S. government should strongly consider nationalizing some banks. The recent economic situation has become so dire that leaving the banks private will soon be academic. International law requires that when a government nationalizes the bank, it must compensate the owner for the full value of the assets that are assumed. The recent inflow of federal money into the majority of banks in this country, however, means that the government has basically compensated the owners, and official nationalization is simply the next logical step so that the banks are fully protected under the U.S. government.

Which of the following most undermines the argument that the political activist makes in the passage above?

(A) The voters in the U.S. are still divided on the issue of nationalization, and there does not seem to be enough support to merit it.
This is thoroughly out of context what the voters think is not our concern we are more concerned about the right laws than view of the voters

(B) A small percentage of banks in the U.S. are still solvent and have not received federal funding.
This is line with the argument that some banks have not recieved the required funding

(C) The federal funding that the banks in the U.S. have received has not entirely covered the debts that the banks now hold on the account books.
This leads strength to the if government nationalizes the bank then the banks will be better protected

(D) The U.S. government is heavily in debt to other nations, and the nationalized banks in the U.S. might represent necessary collateral to pay off that debt.
If the government itself is in debt then there is no way that they can better provide the security

(E) The nationalization of several banks in the United Kingdom was not as successful as the government had hoped it would be.
What other countries commit is least of our concern therefore out

Therefore IMO D
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Re: Political Activist: Given the current economic state, the U.S. governm [#permalink]
I don't really get the role of "however" in the following sentence-
The recent inflow of federal money into the majority of banks in this country, however, means...

I believe there is no contrast in the flow (before and after this sentence).
Re: Political Activist: Given the current economic state, the U.S. governm [#permalink]
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