Blogging from the Highlands of Scotland until I return to the Murcia region of Spain in the Autumn for a month or so
'From fanaticism to barbarism is only one step' - Diderot

Sunday, 28 September 2008

NewLabour's brave new 'State Bank' Britain

Once again, with the said-to-be imminent nationalisation of the Bradford & Bingley, the Labour Party and, unfortunately still our Government, revert to type and jump in to nationalise another financial sector company.

There is already deposit protection for the vast bulk of depositors so what is the fuss about? If the market has lost faith in this bank it should be allowed to fail; then the long slow process of allowing the market to heal itself could begin. But no, the government wants, at all costs (and it will be very high for taxpayers for many years to come), to be 'seen to be doing something', even if it is the wrong thing. I can't even begin to remember how many times I have heard ministers from this sad excuse for a government tell us how much they believe in the market, but it doesn't take much for them to revert to type and start to take things back into State ownership - remember this (in my main website's comment section before I began this blog) and the follow-out when the truth was forced out of him (Stephen Byers) here - completely different subject as it concerns the rail network, but the same principles seem to apply. Seems a long time ago now, doesn't it?

However, on the laterst banking nationalisation fiasco which is about to hit us, John Redwood has some pertinent questions, as usual.

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