Lemon Socialism

Krugman's latest column just rips into the Obama-Summers-Geithner approach to bailing out the banks:

I’m talking, instead, about the administration’s plans for a banking system rescue — plans that are shaping up as a classic exercise in “lemon socialism”: taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right.

While I can't help but to agree with what Krugman wrote, I can't help but to sympathize with the administration. Nationalizing the banks would be an enormous political risk. However, if it's going to be done anyway, sooner is way, way, way better than later.