About Nationalization — Are we merely prolonging the agony?
Roubini: Why Bill Gross Is Wrong and I’m Right About Nationalizing Banks
By Aaron Task at Yahoo Finance’s Ticker/Tech
Excerpt: In the past year, "nationalization" has gone from the unthinkable to the heavily debated. From the beginning, Nouriel Roubini of NYU’s Stern School has played an integral role in the discussion, having warned of its likelihood long before most people have even considered the possibilityIn the past year, "nationalization" has gone from the unthinkable to the heavily debated. From the beginning, Nouriel Roubini of NYU’s Stern School has played an integral role in the discussion, having warned of its likelihood long before most people have even considered the possibility.
More recently, Roubini has publicly advocated for full nationalization of struggling banks like Citigroup, including here and in The Washington Post. This has exposed him to criticism, notably from Pimco’s Bill Gross who recently wrote:
"I think Roubini, Dodd and Greenspan haven’t thought this one through. The U.S. isn’t Sweden, and not just because our blondes aren’t au naturel."…
Gross’ critique of Roubini and nationalization focuses on these main points:…
In the accompanying video, Roubini addresses (and refutes) each of these points and also tackles the controversial question over whether Gross, a.k.a. "the bond king", is merely talking his book and trying to influence policymakers. (Note: This video was taped Friday, prior to Bloomberg’s report about Pimco, the world’s largest bond manager, advising the government on Bank of America’s toxic debt.)
