Nationalisation, NAMA and controlling the access to capital

On the one hand there is the outright dismissal from mainstream economists and various commentators to the idea of nationalising the banks on the basis that it is the politicisation of a market-led private sector and for- profit business. On the other hand, these same commentators have no problem with the politicisation of NAMA using massive amounts of taxpayers money along with a hope, (that is, the benign and ‘trust us’  platitudes)  of increased interest rates, property speculation and a return to an inflated property market will return us to a ‘business as usual’ mainstream status quo.

Is this not a reiteration of the  ‘privatise the profits and socialise the debts’  theory when really what they are saying is  ‘we must keep control of  the access to capital’?  Answers on a postcard please.

It is also notable that today former senior vice president and chief economist of the World Bank, Joseph Stiglitz, has expressed the view  that the Irish NAMA model as presently planned is the wrong way to proceed.

He believes that nationalisation, in the short to medium term, with a view to an eventual sell back to the private sector, would ultimately provide a better return for the taxpayer.


1 Response to “Nationalisation, NAMA and controlling the access to capital”

  1. 1 CiaranMac October 7, 2009 at 7:46 pm

    My sentiments exactly. If 10,000 small businesses were facing a cash shortfall of the same total that the banks are facing, the banks would be first up to oppose any bailout. If 100,000 ordinary people were in debt to the same amount there would be no talk of any rescue. Anyone who suggested it would be “living in the past”. But because it’s the banks who are in trouble, it’s not just a wild proposal but one that the government is hell bent on making a reality. Socialism for the rich, how are ya.

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October 2009
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