Dangerous stuff

The new Banking Bill:

The Government is to publish its Banking Bill, which will create new powers to intervene to rescue failing institutions. Both the Conservatives and Liberal Democrats have dropped minor objections to the bill in an effort to see it enacted quickly.

I\’m always extremely wary of bipartisan support for something. It means that it hasn\’t been discussed, hasn\’t been thrashed out.

I\’m willing to agree that there might not be much choice right now, but I\’ll bet that there are some gremlins hidden in there.

3 thoughts on “Dangerous stuff”

  1. The People have spoken (see my blog), and the message is, let the markets decide!

    In the absence of gummint subsidies and guarantees, banks will just come to some arrangement with their bondholders, aka “Debt-for-equity-swap”.

    That’s that fixed.

  2. You don’t fix distortions in the market by adding more distortions. And the longer you try to avoid a correction the larger the correction has to be.

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