My Final advice to Prof. Krugman, Bank Nationalization! Why No!
Please review the history of Citi ( C ) and Hongkong and Shanghai Banking Corporation Limited (HBC) in China!
Before the Communist took over China in 1949, C (National City at that time) and HBC through a lot legal channels transferred their assets to America and Hong Kong! So many rich Jews and Chinese in Shanghai can retain their fortune back in the British colony, Hong Kong and freedom US. They survived well there! And the Chairman of HBC
Always has an appointed seat in Executive Council, a ruling Chamber of Hong Kong before 1997.
Now C and HBC all back in China and doing business in Shanghai! Chinese trust them! They are the international branded name there!
In diplomacy, a private- handed international Bank represents part of soft power, hard power and can be smart power of a country!
Now UBC almost broke and retreats from international arena, the Royal Bank of Scotland may be dismantled and retreat from international to England corner too! Why we have to temporary nationalize Citi or Bank of America and later disband it later? It makes no sense to destroy Citi, an international soft power, hard power and smart power in the world! In terms of security, it is foolish too (I can not talk further, sorry!)
Enough! Prof. Krugman is very smart man not like the Time Magazine’s 25 sinners of Recession, especially the noted one, Alan Greenspan!
International Bank could be a soft power, hard power, smart power and security power! Got it? No Bank Nationalization, Prof. Krugman and NYT!