In our view there is no stronger argument against permitting centralized control of industries, particularly finance, than the dynamic aptly demonstrated by the Bank of North Dakota gambit. So long as government, state or otherwise, is permitted to translate political desire into market manipulation this sort of cronyism threatens.
In the end capturing lending sectors that represent over 40% of the nation's economy accomplishes two things:
First, the ability to disregard underwriting in favor of loans to this week's favored political class or pet project.
Second, the creation of a significant body of subjects (to be distinguished from Citizens) beholden to the state. Is it any wonder that health care, insurance and energy are next on the list?
We don't really wonder what will be de facto nationalized next. We wonder what is actually going to be left to nationalize. The latter seems quickly becoming the smaller list.
Posts
