The nationalization idea is picking up steam. Buiter follows up with another post in favor of nationalization (in Britain). Salmon expends considerable effort educating Drum on the issue, as does Waldman. Drum, however, still is a nervous nellie about the n-word (no, not that n-word) even though he knows the losses are huge.
Finally, those who are too lazy to read can listen to Chris Whalen talk about the issue.