Nationalised Northern Rock

[Marmora Man]

Exam Questions:

1. Can a nationalised bank work?

2. Can Alastair Darling run a whelk stall?

[AllforNun]

Yes of course asking for tenders on the 3rd biggest mortgage lender in the uk, analysing what's on the table, negotiating, thinking about the direction of the global economy, should only take a couple of weeks huh! christ and he's had nearly 20.

They should just take decisions quickly regarding the economy, and think of the political capital just like the Conservative divs with there slide rule calculators in the late 80's....any one for a pint of ERM !

[Moos]

Not sure about 1) but re: 2) Alastair Darling couldn't run a bath. 50%? Surely that's an A* in the new GCSE's.

[karter]

Its ashame Dick didnt get the bank, the govt will make a killing when they reflote it a few years down the line. I , like many others bought in on the low end as it was spiralling down and have lost several grand, at least there will be compensation for shareholders.

[????]

2) Politicians can't run anything

1) See 2

[karter]

Libdems or labour, all the same ????. This share was only good for shorting.

[MrBen]

1) No. Banks need a commercial driver to work effectively.

2) Darling is not great. But any chancellor who takes over before a downturn would be slated anyway. He'll be quietly sidelined in a summer reshuffle. And I think we all had a part to play in the downturn...who actually thought their 3 bed terrace was really worth ?670,000?! Our greed seems to get the better of us every 7 years...

[karter]

good post Mrben, did you buy a house off LL too?overpriced and coming down just like nrk.

[Michael Palaeologus]

The NCB, British Rail, British Steel and British Leyland were all out-standing success stories of nationalisation under the Labour Party and I am sure that British Rock will do as well.

[karter]

Michael thats very true, the rock will do well long term, current shareholders wont though (RAB capital must be fuming), current govt has not really proved itself so far though (naming and shaming of nrk). Richard Branson would have been good for the rock and its borrowers.

[spadetownboy]

who gives a fuck?

[KalamityKel]

I'm wiv spade but only coz I'm fick and don't get it :-$

[lozzyloz]

I know a shareholder who's losing a sizeable pile on this as their shares become worthless. They bought on the advice of a fund manager who advised (last year) that a better spread should include more stable banking stock ala Northern Rock. Now other speculators who bought stock in the last couple of weeks in anticipation of RB succeeding will also lose everything. I wonder if the next chapter on this farce will be a legal battle with the disenfranchised shareholders?

[karter]

A legal battle will certainly begin but not by me. You take the rough with the smooth with this sort of thing.

[Nero]

Mebbe they should renationalise the rail system while they're at it. It makes more sense now that we need to encourage rail travel over air and road transport. Nero

[lozzyloz]

Nero wouldn't a nationalised bicycle industry be a better option?

[david_carnell]

I don't have much sympathy with the shareholders, I'm afraid. It's a known risk ("value of shares can fall as well as rise..." etc) and this time they lost out.

The people I feel sorry for are those whose pensions may be affected.

As for the success of nationalised industries...50/50. Some do well, some private comanies make a cock-up of it and its worse than before. Time will tell, I suspect.

[macroban]

> The people I feel sorry for are those whose pensions may be affected.

People whose pension fund had/have Northern Rock shares?

Next London & Scottish?

[mockney piers]

Spadetownboy, as we've piled in from the public purse something to the tune of 500 quid for every man woman and child so far, I'd be pretty concerned about what happens to it all.

I mean, we could probably get another trident submarine for that, or 2 nonfunctioning NHS IT systems, or you know, modernise 1000 hospitals....naa that'd be daft!!

[AnotherPaul]

Nationalise everything and have done with this money nonsense.

(Oops, having a Leninist Monday)

[SeanMacGabhann]

So, given the latest news

This one nothing to Do with Alistair Darling or whelk stalls

Can libertarians answer the question:

Just why is it that the 2 governments most closely aligned with the free market and libertarian ideals (at least compared with any serious contenders) both feel the need to nationalise these banks?

[indiepanda]

From what I've read before they are government chartered banks and formerly government owned and they provide funding for about 50% of the home loans market.

No matter how libertarian their views, no government could stand by and let them fail - the impact on the economy would be devestating, and of course they'd be booted straight out at the next election. (Perhaps cynically, I think what most government care about the most, whatever their policies, is staying in power.)

[SeanMacGabhann]

Whatever the flaws, and I can't think of a better system, it is the paradox at the heart of any democracy

History has shown that at times of change/need/cause/whatever - leadership has had to do things that would be deemed unpopular. But so led are we by "opinion polls" and fear of being voted out I blame the electorate far more than any political party for the paralysis of any true thought in government

[indiepanda]

Not sure I agree. The electorate doesn't really get that much say anyway - there's nothing to ensure that any politician you vote for even follows what they've said in their party manifesto.

It's not like the Swiss system where you get to vote locally regularly on issues rather than for a certain party in the hope that on balance they will best respresent your beliefs and interests over the next 4-5 years.

[SeanMacGabhann]

The electorate has far more say than they want

Elect your MP of choice and then make sure they know who you are. No point electing someone and then sitting back for 4-5 years. As a population we is well lazy

Not sure i fancy living in Switzerland either ;-)