The Case for Nationalizing the Entire Economy - TIME:
"Bank ownership becomes more complex when a firm owned by the government does something materially different from what its competitors in the private sector do.... The relationship between a national U.S. bank and private banks both inside and outside the U.S. causes a series of inequities within the system. A government-controlled bank might offer mortgages at extremely low rates, rates so low that they clearly do not take into account the level of home loan defaults. From a policy standpoint, it may make "sense" to do that to help buttress the housing market. But, to some extent that moves the government's control of the credit system from nationalizing banking to nationalizing the home lending system. The government could decide to apply the same principles to consumer credit loans and business lending.These behavioral differences (and even worse incentives than the executives had) is why question #4 scared me so much last week.
It may just be a better idea to nationalize the entire economy and be done with it."