Bank Nationalization and the Otto Problem

Paul Kedrosky opines about Bank Nationalization and the Otto Problem:

For all sorts of reasons, some knee-jerk, some nonsensical, and some entirely rational, the word "nationalization" has roughly the same effect on the average American as does the word "stupid" on Otto in the movie A Fish Called Wanda. The typical American could be dangling by a finger from a hot-air balloon and yet at the sound of the word nationalization they'll go off in a red-eyed rage about evil socialists and the end of America.

Emphasis in original

The problem is that the anti-Communist propaganda has been so effective that the American public can only react as it does. Kedrosky decries this as stupidity, but it is not. The brain-washing has been thorough and extremely effective that extreme measures to save the American Capitalist system are imperilled.

Kedrosky has a further problem:

The frustrating thing is that, if it were explained properly, most Americans would likely be demanding nationalization/pre-privatization. ...

Emphasis in original

The unstated reason for this is that people would understand it is in their best interests to nationalise the banks. You cannot have the people deciding what is best for them! Otherwise, there would be no need for the elite to make decisions for people!

And so, Kedrosky is left to fume at the injustice of it all:

So, is nationalization wonderful? Of course not. It's awful and wildly maddening in a capitalist economy. But is it better than the never-ending bailout? Yes. And liking it doesn't mean anyone's being called stupid or a socialist.

Once more, it's Socialism for the Rich while the poor should still think that Socialism is a very, very bad thing.