The government should be there to help those individuals and families who have been severely hurt by all of this--not to "make whole" those wealthy individuals and families who may have suffered a financial loss, unless that loss threatens to put them under a bridge.
If the government is going to "save" banks and bankers, then it should be at a very stiff price. Let them dine at soup kitchens.
It's amazing, but givne that the WSJ repeats the same fears, it's not so surprising:
Nationalization Fears Grow as U.K. Banks Struggle The further step to nationalization -- in which the government would take over 100% of their shares -- wouldn't only be an embarrassment for Mr. Brown. It would saddle taxpayers with about £3 trillion (or about $4 trillion) in new liabilities, an amount far exceeding the country's annual economic output. Furthermore, it would put the government in the position of deciding which companies should receive loans and kicking delinquent mortgage borrowers out of their homes. A government-owned bank also could hurt competition because customers might be more willing to do business with a sovereign institution. "Nationalization is a last resort, almost as unpleasant for the government as it is for the shareholders," said Bruno Paulson, bank analyst at Sanford Bernstein in London.
The further step to nationalization -- in which the government would take over 100% of their shares -- wouldn't only be an embarrassment for Mr. Brown. It would saddle taxpayers with about £3 trillion (or about $4 trillion) in new liabilities, an amount far exceeding the country's annual economic output.
Furthermore, it would put the government in the position of deciding which companies should receive loans and kicking delinquent mortgage borrowers out of their homes. A government-owned bank also could hurt competition because customers might be more willing to do business with a sovereign institution.
"Nationalization is a last resort, almost as unpleasant for the government as it is for the shareholders," said Bruno Paulson, bank analyst at Sanford Bernstein in London.
Gah. Ideology. Propped by lies (the liabilities are already effectively on the government's books). In the long run, we're all dead. John Maynard Keynes
