The British government waded into the sub-prime quagmire Sunday with the announcement that it would move to nationalize Northern Rock, the nation's fifth-largest mortgage lender. The treasury department rejected two private rescue plans for the ailing bank because they failed to 'deliver sufficient value for money for the taxpayer,' said the treasury chancellor, Alistair Darling. (Los Angeles Times, Monday)
Nationalization is a solution to the sub-prime fiasco like breaking your leg is a cure for cancer.
FEE Timely Classic
Banking Without the Too-Big-to-Fail Doctrine by Richard M. Salsman