> What do you and Paul think would "work" by nationalizing Citibank?
Is it that mysterious?
1. Take control 2. Separate out bad assets 3. Fill the hole in the balance sheet with Treasury bonds 4. Sell off the bank (fast) and then the assets (slowly)
Steps 1-3 remove the bad assets - and they can be accomplished very fast. (Yes, you have to decide which creditors, if any, take a haircut, but so what?) Why is that a giant leap into the unknown?
SA