Another nice analysis of our financial situation by Paul Krugman. I hate seeing people dance around the taboo on using the work, "nationalization". And here, Krugman lays it out: the only stock value left in some of these banks is provided by government guarantees or hopes of a government backstop. Some of these big banks are already effectively nationalized in all but name, because they are entirely dependent on government funds and promises to avoid failure. As has been stated before: we are nationalizing risk and privatizing gain.
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