The Government is right on Northern Rock

And tremendously courageous, in my view. In this day and age, even much of the left, including myself, is decidedly dodgy about nationalisation. My brand of social ownership and democratic control is a decentralist one; though if government didn't have a role this would be little more than foolish economism. I still think however that the role of the state is not to own resources, but to secure ownership and distribution of those resources across society.

Anyhow, before I go off topic, I've noticed that some people are loving it. I wouldn't. The failure of Northern Rock's shareholders means that either workers as taxpayers must subsidise a loss making failure, or workers must be sacked. Being against both, I think that the Government has put itself in a no-win situation, but it has done so for the greater, long term good. As for 'commanding heights', well, the reason that the Rock was nationalised was because it no longer had the capacity to command. It followed. And it followed something pretty devastating.

Anyhow, amid all the talk of shareholders 'getting nothing', I'd just like to say: good. It serves you right: you failed to exercise proper scrutiny of the situation. More to the point, in failing to accept private offers from RAB capital (before getting in the press to denounce the offers as 'derisory'), you've buggered yourself through pure cheekiness. The Rock was, and indeed is only worth anything at all because of the contribution of the British taxpayer. When you, the shareholders, were trying greedily to get yourself a better deal, you should have thought about the fact that any offer at all was not based on your investment or performance as a contributor.

In other words, when you're ineffective, then ungrateful at the expense of the public, this is what you get.

As for the rest of us, nationalisation is definitely the best option. My Dad has complained for some time that he has to pay tax to bail them out... but I remind him and all those who adopt this argument that he would be losing a great deal more were the entire banking system to collapse, or the Rock touch us into recession. Of course that would be unfair, but that's capitalism, and those who complain about tax in similar contexts bear an uncanny resemblance to the social forces most likely to support capitalism as a system.

Which is kind of ironic, because the Rock is a great example of one of the many facets of failure which takes place under capitalism. People who are ideologically committed to the system often argue as if marketeers are 100% accurate at predicting customer behaviour, or even the behaviour of other companies (like some of those in whom the Rock chose to invest). I am not saying that the state is perfect either, but the two failures outlined above (and there are many more when one chooses to explore ideas of wealth concentration and social justice) are a stake in the heart of market fundamentalism far more than they are a stake in the heart of this government. Northern Rock is just another isolated failure of capitalism. Without nationalisation, this failure would not be isolated.

In a rational capitalism (oxymoron, but perhaps more rational capitalism), the state plays a role in securing capital; look, for example, at trade dealing, just for a start. Manipulating inflation... the list goes on.

This is taking place here, as is the separate conception of the state as social safety net. In this circumstance, it's a net that is saving all of us, not just the most unfortunate. Accordingly, the decision to nationalise is utterly correct from all ideological points of view, apart from libertarianism at it's most anti-utilitarian (and thereby essentially anti-human, at least I would argue). Who would risk the collapse of the rock at ruinous cost to the vast bulk of the population, on the back of an ideological principle? Apart from 'boy' George Osborne?

Nationalisation is something that, unlike Madame Press, I believe should be a last resort. I'm not a massive believer in private banking either. But I do love the co-op.

This is a pretty crap situation; but nationalisation is the only mechanism which can stop it getting worse, and bear in mind that if it was allowed to get worse, it would get worse for far more people than are responsible for this mess in the first place.

I'll tell you who is not responsible though; the government. Perhaps everyone's favourite Lib Dem, Vince Cable, is right t hat this should have been done earlier, but all in all, throughout the whole process, the government has done pretty much the right thing. Plus, it's brave for doing something so easily panned by the extremists in the Tory Party.

Far from 'losing control', Darling is finally gaining it. The Tories are extremist, ruinously ideological, and irresponsible not to follow the Lib Dems into backing the government. And as Steve Richards does point out, that could be a problem...

-Note- Most of all, I hope that the rock reconsiders it's backing for the shameful and evil Newcastle United.