Nationalisation is not nationalisation when I say so. So says George W. Bush, so says Gordon Brown. In both U.S. and U.K. failure of the housing markets has led to the unthinkable when governments that have ideologically rejected public ownership have had to step in. “It’s only temporary” says Brown after failing to find a suitable private buyer. Tycoon Richard Branson tried hard, very hard travelling the globe as far as Beijing to try to get something for nothing. Thankfully he failed to impress.
Here’s what the Socialist Labour Party had to say about Northern Rock:
“(The) conditions of capitalism’s increasing economic instability (are) brought into sharp focus by the nationalisation of Northern Rock. However this is not nationalisation in any true meaning of the word, but an attempt to prevent the financial meltdown of the British economy.
The reason that the major banks will no longer lend to each other is because they are well aware that the collateral offered, the assets, are worthless. Yet the Labour government has agreed to lend vast sums to Northern Rock regardless of this, and thereby raise the danger of national bankruptcy.
This approach of bailing out the millionaire executives operating in the financial world is in stark contrast to the government’s attitude to the thousands of working class families who were the victims of the Farepak collapse and is yet one more confirmation that this government only represents the rich and powerful in society.
The ‘credit crisis’ will be ongoing and is only exacerbated by recent government actions.”