You might claim: “they didn’t nationalize it the right way” and maybe they didn’t. Still, once you proceed down the nationalization path, you have to live with the nationalizations you will get, not the nationalizations as a professor might recommend they be done. The AIG transition was overseen by Bernanke and Geithner and of course Congress isn’t nearly as smart or as well-informed as those two guys.

Beware. The mere ability to write, from the sidelines, “it should be done like X” doesn’t eliminate the lessons of public choice economics.

This is from Tyler Cowen, “We’ve already done some nationalizing.”

Question: where was this clear thinking when Tyler advocated the bailout?