Northern Rock: the debacle continues?

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The EU has approved the plan to split Northern Rock into good and bad banks. The latter includes the notorious Granite that helped bring down the bank, and which took me a lot of effort to expose two years ago.

But there remains two really big question: why, oh why is £8 billion to be invested by HMG in new mortgages to push up house prices? This has to be the worst use of public funds in decades.

Second — why is there no clear commitment to mutualisation? I find that amazing. This bank cannot survive without guarantee — why not give the benefit of that guarantee to the greatest possible number for the greatest possible public good?


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