Nationalization Talk Heats Up

February 18, 2009

In today’s Wall Street Journal opinion page Matthew Richardson and Nouriel Roubini say that Treasury Secretary Tim Geithner’s bank rescue plan, dubbed “Bailout 2.0″ points to inevitable nationalization of the failing banks:

While it was not his intention, the reality is that Mr. Geithner is going to confirm the insolvency of the financial system. Once we face this truth, there really isn’t much left to do but nationalize.

 

The nationalization chorus has grown, the Financial Times reports, with Alan Greenspan now supporting bank nationalization as well:

”It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”

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