"Eisinger and Salmon on Bank Nationalization"
Jesse Eisinger and Felix Salmon talk about bank nationalization:
Over the past couple of weeks, I’ve learned that nationalizing banks is an evil Scandinavian notion. Here in the United States, what we need to do is to subject banks to a “stress test.” If banks fail that stress test, they need to be taken into receivership. In receivership the banks will be purged of their toxic assets, and then recapitalized with new private owners. The “cleaned” assets can then be held in an entity that manages them and either tries to sell them off at the best possible price when the panic ends or else hold them to maturity. And anyone who calls this “nationalization” will be forced to read Rebel-in-Chief and Bush Country and then learn to recite passages from memory.
Remember: Nationalization is bad for you! Very bad! Against the grain! Someone just needs to tell Alan Greenspan to stop using the scary n-word.