On nationalization

Some wise people have been saying we should quickly nationalize failed banks and sell them to investors at discount prices, like we did with Washington Mutual in October 2008. Other people don't think nationalization is such a good idea. Paul Krugman says we've been socializing bank losses while allowing shareholders to keep profits (a lose-lose for the taxpayer). Well come on - let's go hard or go home. Given a choice between letting banks fail (shareholders absorb losses but keep profits), nationalizing (government absorbs losses, keeps profits) and muddling through (government/taxpayers absorb losses, don't get any profit) I would prefer either of the first two.

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One thought on “On nationalization

  1. Justin Cole

    Nationalize banks? What’s going on here? This is America. The private sector is the god of American capitalism. What’s next, the return of a strong labor force and housing prices more in line with the 2.7 times median income that they have hovered around for the 20-3o years before the Greenspan fueled boom? LOL!

    Hey cousin – drop me a line when you get the chance. Hope everything is going well for you at school and in life. I’ll read through some more of your posts when I have some time. Good stuff.

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