Ooour Wullie is at it again. Here\’s the bare bones of his solution.
There are further positive measures. The government will guarantee any new issues of asset-backed securities, the packaged-up mortgages and suchlike that can be bought and sold, to get finance flowing again. It will even have the Bank of England buy them. This should allow home buyers to get mortgages again. It falls short of the mobilisation that James Crosby called for in his report on mortgage finance, but it has the advantage of extending credit to companies that cannot refinance their debts. It also allows the Bank, when it buys the securities, effectively to print money, a crucial breakthrough.
That Freddie Mac and Fannie Mae being built in England\’s green and pleasant land. Worked real well for the Americans, didn\’t they?
The government should go further. Northern Rock should be the government housing bank.It should be joined by a new national infrastructure bank and even a long-term industrial investment bank.
That would be like the German Landesbanks then. Which have worked so well for Germany, haven\’t they?
There needs to be an international effort to create simple clearing banks by outlawing the ability to mix commercial and so-called "investment" banking.
And that\’s Glass Steagal again. Something which the absence of hasn\’t in fact caused the current problems.
Betting our cash for personal gain should be outlawed.
Eh? So it is to be illegal to run a corporation now? What in tarnation does Will think that a company is? You stick money in via a share issue and the management punts it for pay. That\’s what a company actually is, a method of betting our cash for their gain: with us getting some of that gain if they bet right.
Our companies have chased after too high returns for too long and undervalued innovation and production.
So, umm, Will is suggesting that innovation and production will produce lower returns and yet, simultaneously, that this is something we want companies to pursue? That is, we should deliberately direct the economy so as to make us poorer than we could be?
And this man gets paid to write on economics?