Thomas Ferguson, a contributing editor of The Nation, is professor of political science at the University of Massachusetts, Boston. He is the author of Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political Systems (Chicago).
Short-term nationalization of failed banks is gaining support--but without stringent safeguards, new rounds of pathology are inevitable.
This is not only the most expensive way to solve the problem. It's also the most likely to fail.
The Paulson/Bernanke bailout plan is not the way to go, unless you work on Wall Street. Even if you do, there are compelling reasons to fear it. Here's what Congress should do instead.