Why Nationalization Is Still a Dirty Word
It’s no secret that the specific language of polling questions affects results, but a thirty point swing?! This actually makes me think that nationalization of select banks is more likely than I’d previously thought. Given all the noise from Bernanke, Geithner, and Obama himself, I was fairly convinced that they really do oppose nationalization for ideological reasons. But this poll result makes me think that perhaps it was simple political cowardice. If that’s the case, then you can expect to see nationalizations take place under the code words “temporary takeovers” and “government-assisted restructuring.” There will also be much talk about how the FDIC does this kind of thing to insolvent banks all the time. Let’s just hope taxpayers get a better deal on it than we did with AIG.
(h/t Yves Smith)


