The news that the Cooperative Bank needs more capital is not, as such, news. It’s been known for sometime, but a credit downgrade has highlighted the issue today.
What it does pose is a more important question, which is that given the over inflation of the property sector – which is not going away – and the resulting over leverage of many bank customers leading to excessive bad debt risk for all banks – is there anyone who can now bear the risk of banking but the state?
And in that case has the market economy now failed?
A minor participant in a market has screwed up and could go bust. Therefore the market as a whole has failed.
We should therefore nationalise the pub industry as pubs go out of business every week.