Have you heard the one about how you get screwed by capitalism? Well it goes like this. A load of greed-merchants in America* are allowed to con poor people into believing that they can afford to buy their homes. Banks around the world just can't wait to get a piece of the action. But the small print says that within months of signing up crippling interest rates will be applied. Result - thousands lose their homes. While they become homeless, their houses, which nobody wants to buy, fall into ruin.
So what happens next? are the victims allowed to return home and pay rent? Do the greed merchants get sent to jail - which is where they belong? Er......no, the banks, such as Northern Rock incur huge losses, which is no more than they richly deserve , and they go bust. Except they don't go bust. Not allowed to apparently. So there is no comeback on their selfishness, greed and stupidity. Instead, we the taxpayers bail them out to the tune of several thousand pounds each. So that means we get to own Northern Rock doesn't it? Er...no again. Because Gordon doesn't want us to. He doesn't want us to because he wants another load of greed merchants to take Northern Rock over thereby nationalising the debt but privatising the profit.
As a footnote its worth mentioning that despite the fact that some have tried it present this as a problem of government - it is a private sector free market failure.
* Postscript - just in case you think I'm going over the top, Larry Elliot, who is the Guardian's economic editor had an article published on 19th March 2008 which was headed - 'America was conned - who will pay?'. In it he said - "Americans have been conned. They have been duped by a bunch of serpent tongued hucksters who packed up the wagon and made it across the county line before the lynch mob could be formed" Makes 'greed merchants' sound a bit weak doesn't it? Mind you - who is going to pay? There's no sign of the culprits being brought to book at the moment.
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