Nationalisation of Financial Institutions

Now that the UK has effectively nationalised Northern Rock (almost the first birthday of the nationalisation) and the USA has effectively nationalised both Fannie Mae and Freddie Mac, we can only applaud this new spirit of public ownership. It's just a pity that the taxpayer always seems to get lumbered with the losers rather than the shareholders who were paid large dividends rather than creating reserves to see their companies through financial crises. It's also a pity that the same spirit of providing a safety net for investors couldn't have been brought to bear on the problems of Farepak, but then their investors weren't already the rich so they don't count for much to Big Gordy.

Just a further comment on the global financial meltdown. Money doesn't just disappear, so if everyone is going to get poorer, who is going to get richer? Capitalists are fighting like ferrets in a sack each trying to save his own arse at the expense of the rest and, as usual, the poorest will pay the price and the rich will get richer. Banks are queueing up to buy each other at bargain basement prices and it's about time the national and international regulators stepped in and sorted out this fucking mess they have allowed to be created by pure greed.

Scottish Nationalists and the Millionaires Club 3

A bit in the front of the Herald today might throw some light on the attraction of the Nats for the millionaires club.
It reports that a leading financier, one Ben Thomson, chairman of the investment bank Noble Group, backs the Nats because a Nat win would rid the finance sector of 'over-regulation from London'.

He obviously sees an opportunity for the financial sector to benefit from a reduction in regulation, and while I support the independence cause I am not sure that the Nats., who seem to have some unsavoury friends, are the right people to take us there. I hope that this is just a coincidence and not another under the counter deal done in advance of an election (a 'Souter' ? )

Looking back over the recent past it might even appear, when we think about Farepak, illegal bank charges, endowment mis-selling, millions lost in tax avoidance schemes, and the general bolox the financial sector has made of pensions with the assistance of 'the big clunkin fist' that a lot more regulation and scrutiny is required, not a lot less irrespective of whether it comes from London or Edinburgh.