One of the piquant ironies of the effective nationalisation of a large chunk of the British high street banking sector this morning is that it leaves those politicians and commentators who have spent their careers ridiculing the clumsiness of the state and scorning any form of government intervention in society utterly bereft.
However happy Gordon Brown might seem to be in this crisis, no one seriously believes that the Prime Minister entered into this unprecedented state intervention in the private banking sector willingly. This package was not imposed on a healthy private industry by ideologically-driven socialist politicians. The bankers pleaded for this package as the only way to stop their businesses being utterly destroyed.
Now they have got it. And the political, as well as the financial landscape, is transformed at a stroke.
Stop kidding yourself Mr Chu, the gravy train is still full steam ahead, fueled now by Public money rather than Private. It will continue until such times as the markets begin to pickup, at which point they will once again return to private hands at a knockdown, fire sale price, sans debts and any other baggage they've accrued. The Taxpayer will find themselves responsible for the loses and debts incurred by the criminal activities of the spivs.
I doubt that Brown had much choice and the bankers certainly wouldn't have pleaded with him. It would have been a simple offer, bail us out or we bankrupt the economy!
Posted by: flipped | Monday, 13 October 2008 at 01:45 PM
The scenario envisaged by Flipped (above) must not be allowed to occur. Anything that is taken into public ownership because it cannot be allowed to go bust, should never be in private hands again.
Posted by: Mark Underwood | Monday, 13 October 2008 at 04:29 PM
Look behind the spin of Brown's news conference and the government hand-outs. Then a very different picture emerges.
This isn't nationalisation. There's little accountability and parliament does not call the shots.
Today we see another eye-watering bank bail-out which has nothing to do with helping people and everything to do with throwing more cash at the City and saving Brown's skin.
Voters will see through it.
http://theorangepartyblog.blogspot.com/2008/10/bulimic-bank-bail-out-makes-you-sick.html
Posted by: the orange party | Monday, 13 October 2008 at 04:40 PM
There Is Nothing As Pathetic As A Pleading Banker With No Bleeding Liability Insurance
Posted by: Silvio Palmer | Monday, 13 October 2008 at 06:31 PM
What about that one?
http://www.worldfutures.info/Sponsored-Items/My-Thoughts/Capitalists-fear-the-cave-man.html
Posted by: ALI | Monday, 13 October 2008 at 08:34 PM
True. The bankers, usually the first to start squealing if any regulation of their activities is suggested, have not uttered a word of protest. But - when later disallowing fat bonuses comes up for discussion, then listen to the affronted response. In the meantime they will suffer through the recession, in solidarity with the public, although from a better-padded position. It is interesting that Barclays are fighting to remain outside of government control - their bosses get the biggest bonuses.
Posted by: john problem | Tuesday, 14 October 2008 at 09:27 AM
I want to know why its only the 'senior' execs etc whose personal finances are going to be calmed down - why not ALL of those involved, right down through the whole sorry stupid selfish structure, and especially those 'juniors' who went face to face with poor old gullible greedy joe public?
Posted by: jaff | Tuesday, 14 October 2008 at 09:52 AM