Comments on: Nationalising banks isn’t a bad idea

By: Bank Nationalization Redux - An Awkward Corner

Bank Nationalization Redux - An Awkward Corner — Tue, 20 Jan 2009 12:31:20 +0000

[...] Chris Dillow says nationalizing banks is not a bad idea. "The simple case for nationalizing banks is that [...]

By: Foyle

Foyle — Fri, 05 Dec 2008 21:07:38 +0000

Nick is absolutely right. Governments are a back-up. If you make them the front-line, then you have no back-up except appropriation, defaulting, and printing money.

Besides which I’m pretty sure nationalising all the banks would be illegal under European law.

Lastly – it’s Seumas Milne. Unless you were being ironic about the Grauniad’s editorial style…

By: Nick

Nick — Fri, 05 Dec 2008 20:43:38 +0000

James, if you did that you might as well nationalise them. Telling private banks to stay solvent while telling them how to lend out money is a recipe for disaster. At least, if they are nationalised they don’t have to stay solvent. Anyone for printing more money!?

By: James D

James D — Fri, 05 Dec 2008 17:56:52 +0000

Nationalization still is the nuclear option though. I am more concerned by the government’s failure to threaten to cap interest rates and impose a statutory duty to lend. Banks would be a lot more co-operative if they received similar treatment to local authorities.

By: Newmania

Newmania — Fri, 05 Dec 2008 14:22:40 +0000

I am not one of those who feels our access to debt is the root problem and
It seems to me that it is a less regulated not amore regulated system we need. You will note that the Insurance Companies are weathering the storm imperturbably and this is because of the extremely fluid competition . Only AIG which acted like a bank has suffered a bank fate and that’s because it was underwriting bank debt .

More smaller and free-er would have kept us safer and we should work towards that . but we start from where we are .I see no case for nationalising the specialist and international services the City offers . If it cannot make money it should die so we have to be clear which banks we are discussing .
There is a weak but not absurd case for nationalising High Street Domestic Banking for Private Consumers . I am highly horrified at the idea the state should play at Commercial credit which would turn the economy into an essentially state controlled dead land . We cannot afford that
You are wrong to dismiss the awfulness of nationalisation . It does make stupid dull expensive and political companies but is this worse than what we have ? Not much I agree . and normal domestic banking could be handled like a Utility .Its not a stupid idea but unless you think access to debt is the silver bullet its too much for too little