The Nationalisation of Northern Rock

News that Northern Rock is to be nationalised does not come as a surprise. There was a certain inevitability about yesterday's announcement. The prospect of an increasing number of "uncommercial" ventures having to be bailed out by the UK Government also looms. This Government's own over-optimistic faith in the god of economic growth, together with poor regulation of the economy, are the root causes of the present predicament. But would a change of government save the situation ? As one yet to be convinced by the "substance", as distinct from "spin", of the other political parties, I doubt it.

PS The following article pretty much sums up my take on Northern Rock :

"Life on Mars: Brown and Darling go back to the 70s
Richard Hunter, head of UK equities, Hargreaves Lansdown
February 18 2008

It seems the retro-fashion for all things 1970s has now extended to the corridors of Whitehall.

The decision to nationalise (albeit temporarily) Northern Rock is one that will not have been taken lightly and it may yet prove - although by no means guaranteed - to have been the "least worst" option, to use what has become Northern Rock's catchphrase.

In the 1970s, a number of faltering British companies were taken back into public ownership in an effort to revive their fortunes. Rolls-Royce in 1971 (subsequent privatisation did not take place until 1987), British Leyland and British Aerospace were among those nationalised, with the likes of the banking arm of Johnson Matthey following on in the 1980s.

In the mid to late 1980s, the trend was reversed with the Conservative government's decision to privatise a number of businesses in an attempt to promote wider share ownership, which saw the likes of British Telecom, British Gas and British Airways becoming quoted companies".

A Non-Elected Chancellor of the Exchequer ?

There were murmurings on the radio this morning about the prospect of a Cabinet re-shuffle. I thought we'd just had one (see below). Of course this may have gone unnoticed by some !

The current Chancellor of the Exchequer was identified as someone on the transfer list, with Ed ("I've got the") Balls named as a possible successor. I won't repeat my views on Balls.

Personally, I might favour a Non-Elected Chancellor, following the precedent of Lord Digby de B'rm. Now let me think....Richard Branson and Virgin Treasury Services perhaps. Ho, Ho, Ho !