Fred wrote:
> Nationalized banks would also make the economy more stable in the future.
>  Nationalized banks would take fewer risks during an expansion, in order to
> avoid debt induced bubbles, that inevitably burst and cause so much
> hardship.  For example, there would be no more housing bubbles; instead, the
> overall housing policy objective would be to make decent affordable housing
> available for all.  With housing more affordable, mortgages would be more
> affordable and less risky.

I agree that "nationalization with haircuts" makes a lot of sense. But
the above is extremely unlikely to happen. S&Ls were nationalized at
the end of the 1980s, but then they were denationalized. That's the
usual pattern seen historically and as far as I can see those
mainstream folks who advocate nationalization are also advocating
denationalization after things are cleaned up.

More likely is denationalization and improved regulation.
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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