Getting worn out for the weekend

But, the other case against nationalization and let me back some of this out with a thesis I had before about how ignorant Nuriel Rubini is about "Markets"...

The problem, besides that when you wipe out the equity holders you wipe out Pension funds, and Endowments, insurance companies.

Kudlow talks about it, the problem is that the minute you nationalize one bank, suddenly you have a strong possibility of doing it to 15 more. You have what Sociology terms "Institutionalization".

This is the real Moral Hazard, that instead of giving them a "hand up" you are giving them a hand out, that then they are Dependant on forever. Also any time in the next decades, you could wind up having to Nationalize them every time. They will be like Lotto tickets instead of stock. Private capitol will not come in unless they have government come in first, then government will then have to give the "All Clear" to allow private capitol to come in, but every one of the equity values will go to Zero, until the all Clear is given.

Oh, and when he says we are in "round 3".... YEP! that I agree with. They nationalize banks, and we go back to "Round 1."