So George Osborne has at long last realised we need a state owned investment bank.
First, why did it take so long?
Second, will he now realise that supply side reform simply does not work? It has not with the banks.
Third, will he now admit the state can and must pick winners? The Olympics is clear evidence of that.
Fourth, let's just hope he does not give control straight back to bankers.
Fifth, why doesn't he just call it Royal Bank of Scotland and buy out the remaining private shareholders there?
Sixth, will he please give it enough cash to make a difference? I note how, here.
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When the rules for athletics changed from allowing every competitor to have one false start each and then be disqulaified on their second false start only, the 100 metres used to have many false starts: todays’ rules, as seen in the UK Olympics, any false start is penalised with immediate disqualification for that athlete, as Usian Bolt found out in the Worlds last year.
Now, comparing the number of false starts in the old system (many) to the number in the new system (very few and rarely high-profile) might perhaps serve as a model for regulation of, say, finance.
Nice pieces on the state funding of our athletes in Skidelsky at Project Syndicate, and on the London Review of Books blog posting by Ross McKibbin: so much for the Big Society voluntarism and its one gold medal in Atlanta 1996. But also big worries that the tax-on-stupidity lottery is the only way to get proper funding.
The City loves market pressures and competition so a state-owned bank would simply provide them with another competitor and allow personal customers and businesses an alternative. Central and local government could use this bank to keep costs to a minimum. As you say, Richard, the shell of RBS is already there and could be used – after flushing out a few of the darker corners.
It is interesting to note that benefits payments, both in US and UK are processed by J P Morgan. Why is this, I wonder? (Yes, a rhetorical question.)
“It is interesting to note that benefits payments, both in US and UK are processed by J P Morgan. Why is this, I wonder? (Yes, a rhetorical question.)”. This is disturbing news which needs to be disseminated widely. Someone needs to tell Max Keiser – he just loves the GVS!