Great column on the continuation of the bailout of the financial sector: Bailouts for Bunglers

And I especially love the quote:

“taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right”

Bingo.  Further down:

“But bank stocks are worth so little these days — Citigroup and Bank of America have a combined market value of only $52 billion — that the ownership wouldn’t be partial: pumping in enough taxpayer money to make the banks sound would, in effect, turn them into publicly owned enterprises.

My response to this prospect is: so? If taxpayers are footing the bill for rescuing the banks, why shouldn’t they get ownership, at least until private buyers can be found?”

I completely agree that governments are normally not the best choice to own or run businesses, but I think the alternative is worse here.  The AIG bailout seemed more reasonable in that sense since the government took majority control.

Separately, I don’t know what to think of the stimulous package.  But, since Krugman likes it I’ll assume it’s OK!