Wholesale Global Nationalisation - the only Option?
Forget ad-hoc bail-outs or part nationalisation of failing financial institutions. With Citigroup walking away from Wachovia (because they no doubt think it will drag down Wells Fargo and will THEN buy the combined group for an even cheaper amount) surely the G20 (the Group of 20 most 'developed' nations) must agree to wholesale nationalisation of entire industries core to a country's (or continent's) economic well-being.
Take GM. We know GM USA is in trouble, but what about GM 'Rest of World'. Like night follows day, this is going to go down and down and down - it's stock price is already that what it was in the 1950's. So, maybe the US Government had better buy it, and stabilise it...
Indeed, it seems that wholesale Nationalisation on a country scale could be the final 'bottom out' option. Economies (and taxpayer revenues) will then stand behind industries. I blogged about the 'Socialistion of Risk' just a few days ago, but more tongue in cheek, than in seriousness.
But, surely it's the Final Option? Otherwise the fall today of 9% on the Nikkei will be followed by first the UK, then the USA stock markets falling, and the CP (commercial paper) market contracting further from the $1.7 Trillion (down from $2.2 Trillion July 07) down and down and down...
Looks like we're back to the Gold standard. Better hang onto your gold necklace...
