Paul Krugman. Somebody stop him!!

Seriously. PK writes today:

“If taxpayers are footing the bill for rescuing the banks, why shouldn’t they get ownership, at least until private buyers can be found?” Krugman wrote in a column in the New York Times published today.”

Dude! Why nationalize a zombie bank when you can start a new one for a fraction of the price? Not that I am suggesting government should. But between nationalizing a bankrupt insolvent bank and starting a new one without all the baggage, which do you think will cost less?

If the overriding concern is to protect the tax payer, NATIONALIZATION IS NOT ON!

What makes PK think that government can do a better job at infusing value in a bunch of assets that, for all intents and purposes, have no value now? Think about it. If banks are insolvent it is because nobody wants to buy their assets. If that weren’t the case, banks wouldn’t need government bailouts would they?! They could just sell off some assets and off they’d go on their merry way.

The insanity continues!

http://www.bloomberg.com/apps/news?pid=20601087&sid=a4Tl65kFU96s&refer=home