Paul Krugman, in his NYT column today, joins the chorus of people calling for "nationalization" of the big banks. As we have noted here, that chorus includes even the so-called Maestro himself, Alan Greenspan, who told the Financial Times last week that nationalization may be the "least bad" option: "I understand that once in a hundred years this is what you do." Krugman is at least clear on what he understands by "nationalization"; here are the last three paragraphs of his column:
We wonder whom Krugman includes in his statement, "So do we all." We just posted an article from our March/April issue (to be printed soon) in which economist Fred Moseley argues for permanent nationalization of the "too big to fail" banks. If banks are too big to fail, they should be public, and run in the public interest.
Read the article here.