Lately the Federal Deposit Insurance Corporation has been seizing banks it deems insolvent at the rate of about two a week. When the F.D.I.C. seizes a bank, it takes over the bank’s bad assets, pays off some of its debt, and resells the cleaned-up institution to private investors. And that’s exactly what advocates of temporary nationalization want to see happen, not just to the small banks the F.D.I.C. has been seizing, but to major banks that are similarly insolvent.
From Op-Ed Columnist – Banking on the Brink – NYTimes.com
Krugman explains temporary Bank Nationalization as a business transaction. You may want to take notice of the fact that the plan does include the word temporary and doesn’t include the words gulag, re-education camp, or annexation of Sudetenland. This should comfort the people on the right but not the people on the far right.