Why is it that we see governments around the world struggling to bail out the banks. Especially when, without any underlying necessity, all the banks do with the money is either strengthen their balance sheet….or start buying other banks that didn’t qualify for the bailout cash!
It is time that governments realised that…wow….we own the biggest banks in the world…if the rest of them do not want to lend….then…we will.
In the UK. The goverment owns Northern Rock and pretty much RBS and probably soon HBOS.
In the US, Mr Obama….step out of the box….cause I know you like to….take BOA…it sounds good for America….
In both these situations…govt owned……….set the lending policy
Lead where the rest will follow……
Take the corporate accounts….the payrolls……the mortgages..re-own the mortgages( buy back your own securities)
Set the competitive bar and tell the rest that if they dont compete there is no more money and they will go to the wall…the govt wall…..
i.e.
lend or die
compete….but they gotta have something to compete against………..
