Curly's Corner Shop, the blog!

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Another nationalised bank

with 4 comments

Bradford and BingleyB&B to come into public ownership

I noted only two days ago my discomfort at the massive multi-billion dollar bail out of the financial system in the USA and the complimentary actions being taken here in the UK. I fear that government intervention is not healthy, adds massively to the national debt, and will store up further problems for the Conservatives when they return to government, but perhaps this is what Brown intends.

John Redwood is also firmly against the idea of further nationalisation of the banks and poses so many questions about the wisdom of the decision that he will likely keep Alistair Darling and his team busy for the next fortnight. How come the government plan to announce the takeover before Monday morning and while Parliament is not sitting?

One might have thought that with such a low share price that B&B might have started to organise their own fire sale and that other institutions might have seen an opportunity to acquire a bank/building society on the cheap, too late to make those decisions now. Despite the sage words of Redwood, I fear he will not be allowed to be one of the stars of the show at Birmingham this week, but I would like to hear if the Conservatives have a party line on these issues.

“We did well there Mr. Bingley”

“Well thank you Mr. Brown”

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Written by curly

September 28, 2008 at 1:33 pm

4 Responses

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  1. […] Original post by curly […]

    Curly’s Corner Shop

    September 28, 2008 at 2:35 pm

  2. I am generally against nationalisation or government intervention of any sort. However, I suspect there is some very good logic in the nationalisation of the Bradford & Bingley, because a run on a UK bank, would likely leed to a further loss of confidence in other banks, none of us can afford to have that happen. The shareholders will, of course, lose out, but that is what happens with speculators, some you win, some you lose.

    Whether we like it or not and most like myself do not, there is a need to steady the boat, particularly one that affects us all. Further, I suspect the reason that Cameron & Co have said little, is because they do agree, but don’t want to publicise the fact. The American’s have sought to impose a condition in their bailout plan, whereby, none of the executives of businesses that have been ‘saved’ can do so without the possibility of a penalty. For 5 years, The Fed will be able to size profits, bonues etc., we should, where practicable, do likewise.

    UK Voter

    September 28, 2008 at 2:47 pm

  3. I don’t think the actions in the USA are exactly complimentary to anyone, actually. I certainly don’t feel like complimenting any of the participants in that scenario, nor in ours for that matter.

    It is a pity that Vince Cable is perceived by so many as having great understanding of matters such as these. Interestingly, one day he says nationalising B&B should be a last resort an would be a bad idea, the next he says it is the only way to go.

    For you, Curly, and all others with children (and possibly grandchildren) the future prospects for them are far from rosy. They will carry much (most?) of the burden. It would be so easy for a single chap like me to take a more casual outlook, as it will not affect me in that way; yet I do take a serious view on all of this, despite all of that.

    A part of me wonders whether all this has been deliberately manufactured, to provide an excuse to nationalise some banks (whichever fell over first, second…) but perhaps I am growing too cynical in my middle age!

    John Ward

    September 28, 2008 at 8:20 pm

  4. It’s the lack of government control that got us here in the first place. The kind of laissez-faire, Friedmanite economics pushed by Reagan and Thatcher has never worked and will never work. As ever it’s the mugs at the bottom who get to pick up the tab.

    Michael

    September 30, 2008 at 12:18 am


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