Friday, November 21, 2008

Nationalisation threat to banks

According to the Independent , the Government is using the threat of a wholesale nationalisation of banks in an attempt to force institutions to lend billions to small companies struggling to survive as Britain slips into recession. Downing Street yesterday made plain its fury over high street banks which refuse to use the massive injection of taxpayers' money they have received to come to the rescue of businesses hit by the credit crisis. Lenders have also faced criticism over interest rates charged to homeowners and for stepping up repossessions.

Gordon Brown dismissed suggestions that he should take advantage of his reviving popularity by calling a June general election, insisting he was fully focused on steering Britain out of the downturn, starting with Monday's pre-Budget report.

IMO: I would have thought that, with the proposed considerable equity investment by the Government, we should be well on the way to an effective public-private partnership - which should not be a 'gimme' operation by the pirates who call themselves capitalists, but a return to the chance to effective return of the sensible use of public and private resources in a way which would have been approved of by such as Beveridge. This could allow the Govt enough say to prevent a lot of money being wasted, as the large investments to be made in banking must require that we can rely on. But a healthy private sector could still be allowed to flourish, without paying sums to the business thugees or the fat cats in local government. So hopefully, Gordon Brown is going to do what any decent person would want to do - and even full bank nationalisation may be needed to overcome intransigence.

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