Thursday, October 9, 2008

Has the whole world gone fucking crazy?

The US is thinking about taking equity stakes in banks. The UK has already done it, calling their plan partial-nationalization. Nationalization is like pregnancy, you either are or aren't. The Brit gov't is selling somebody a bill of goods with that terminology.

Public ownership of private enterprise is anathema to me. It is especially scary with banks because banks reallocate the economy's resources, and if given the chance there are a whole bunch of people on the left who would like to reallocate resources by economically distorting social criteria. If the government can find no other way to deal with this crisis besides bank nationalization, then I am very afraid.

This is not to say that it won't work to stabilize the financial sector, but rather that the means to the end make me very uncomfortable.

Carthago delenda est

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