The WSJ agrees: Real capitalists nationalize

Becker Sides With Flynn
Gary Becker echoes Michael Flynn:

"This and other examples of harmful government interference in the running of companies where they have an equity interest provides a very good lesson for the United States. Avoid taking any equity interest in private companies when buying assets of banks under the bailout bill, or when investing other government revenues."

I find this argument interesting, but unconvincing.

"My idea is that this is necessitated by the requirement that the deal optimally protect the taxpayers interests. My idea is that the government would eventually get out of these businesses by selling them or the government's interest in them. I feel that this is a clear and clean proposal, far less amenable to lobbying and other problems dealt in by complexity in any hybrid plan. "

The TARP plan, for example, seems much more risky and convoluted. Again, if the government is to get involved, one should focus on the outcome, not the initial conditions. While the Swedish Plan leads to more government in the short run, I believe it will be easier to exit and less costly in the long run. Being afraid of government involvement is moot at this point, whereas actual solutions are called for.

I agree!

It amazes me how the hypocrisy of this country is unending. Who in the world will ever listen to us again? We have squandered our moral authority fighting terrorism and now we are eviscerating our self proclaimed position as the leader of free market capitalism. This is the Bush legacy.

"And now, in a development that may be a lot more significant than John McCain pushing a $300 billion plan to buy up mortgages, those ultracapitalist Wall Street Journal editorialists are urging Hank Paulson to use it:"

A two-by-four will get the attention of even the WSJ editors.