It’s time to nationalise

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The Guardian has reported:

Shares in Lloyds lost half their value before ending 31% lower at 44.8p. Lloyds' stock market value is just £6bn - barely half the sum put in by the taxpayer.

RBS, soon to be almost 70% state-owned after a £20bn cash injection, has a stockmarket value of less than £4bn. In 2007 it was worth £78bn.

Barclays was also hit hard, touching 69p before ending 17% down at 72.9p, to be worth £6bn - little more than the £5.3bn of profits it expects for 2008 and down from £58bn 18 months ago.

For £16 billion 75% of UK banking can be brought under government control, stripped of its toxicity and repackaged.

We need to do that.

The yield would be enormous in seigniorage alone - reclaiming the right of the government to make our money.

Let's do it. Nationalise now.