In it, but not of it. TPM DC

My Nationalization Problem--and Ours

Last night, the federal government pumped a $1 billion into the ailing institutions. The federal, National Credit Union Administration, the agency that regulates credit unions, had to pump the money into an outfit called the U.S. Central Corporate Federal Credit Union which links together the corporate credit unions. That federal agency also said it would start backing up the investments that retail credit unions have in corporate credit unions.

In other words, you have a classic contagion where even the good, responsible credit unions are in trouble. (And that's leaving aside the problems they have with members who are in trouble on their mortgages, car loans, etc.) You have lots of government money going in but no nationalization, for better or worse.

There's not going to be government management, let alone ownership, of credit unions. The bad side of this is, of course, we've got the classic problem of private profit and socialized risk that plagues regular banking. That's a messy situation but nationalization, it ain't.