If it quacks like a duck…
At this economic bloggers conference I’m attending, we had a discussion last night about how no one in charge will say the word “nationalization.” It’s obviously a politically potent word. But then I wake up this morning to read about Citigroup. As Dan Grech’s Morning Report story points out, this is nationalization, plain and simple:
Finance professor Peter Hahn: The government is not just taking an equity stake at 40 percent. Citi’s deposits are guaranteed, the hand of the government really is all over the institution. The real risk is being born by the taxpayer.
Then, the people running the government should respect the taxpayer. Stop playing semantics. Be straight with us.
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