Tyler Cowen is Professor of Economics at George Mason University and Director of the Mercatus Cente and author ofThe Great Stagnation. He blogs at Marginal Revolution.
Matt Yglesias puts forward some of the current arguments for nationalizing insolvent banks; Paul Krugman and Felix Salmon are pushing a similar approach. Maybe, but I'm not yet convinced.It's easy enough to argue that any single bank yields a superior result when that bank is nationalized rather than bailed out, for reasons ably discussed for Matt. The problem comes with the banks that sit on the margin, namely the banks that do not yet need either…… More »
