Nationalization on the Rise

The topic of bank nationalization, albeit temporary or labeled as “preprivatization,” is starting to pick up some steam. In a piece from Sunday Paul Krugman offered a pretty  concise explanation for why some form of nationalization is necessary for “zombie banks” like Citi and Bank of America to survive. It’s a worthwhile read, particulalry for those who recoil at the term nationalization and its red connotations.

I have yet to hear a compelling reason why taxpayer dollars should go to bank shareholders without substantial return on that investment. Unless Paul and I are missing something nationalization seems the only way to resolve this issue.

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