Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
is that we've ALREADY nationalized their failure: we are guaranteeing their losses, but getting none of the upside and no control.

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.

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

by Jerome a Paris (etg@eurotrib.com) on Thu Jan 22nd, 2009 at 10:12:27 AM EST
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