Monday, October 06, 2008

Happy days are here again (not!)

I claim no experties in economic matters as I have said before once or twice (well, once). But one cannot help worrying when the government shows every sign of wanting to nationalize our banks. How else can one describe the apparent plan the Chancellor has mooted of buying a stake in the large banks?

Alistair Darling is promising to spend billions to prop up banks and in return the state will part-own them. Great. Even the Attlee government did not go quite that far. Almost but not quite. Incidentally, where is Mr Darling going to get those billions? There will be no Marshall aid coming from America.

David Cameron, leader of the party that used to be known as Conservative, is supporting the move. Hands up anyone who is surprised by this "stunning U-turn" as the Sun puts it.

In another part of the woods the Guardian reports that there are plans to create a new economic council to tackle the existing rather large problems. I expect the Conservatives will support that, too. Anyone here recall the disastrous Wilson - Callaghan administrations? Or, going further back, the catastrophic consensus known as Butskellism?

  • Other posts on the financial crisis here.