Can We Please Nationalize These Banks?

As a United States taxpayer I am not pleased with the progression of the bailout to date. The first TARP fund has largely been squandered. I commend Bernanke for thinking outside the box however the American public was unprepared to quickly accept his prescriptions and therefore he was a bit constrained.

As an outsider analyzing the situation, it has become rather evident to myself and other economists most notably those concerned with reality including Roubini, Shiller and the likes that the US banking system is effectively insolvent. The best course of action is to follow Sweeden, nationalize the banks, differentiate between good and bad assets, and ensure that the necessary regulatory stops are put in place. Once that is completed in a couple years sell the assets to the private sector. Perhaps the term bridge bank is more fitting.