An articleabout the UK government’s enthusiasm for peer to peer lending says “Government is also keen to encourage alternative finance and last week announced four peer-to-peer lenders will be given a total of £55m in taxpayers' money…”
So the solution to the TBTF subsidy and occasional billion pound bail outs for large banks is to subsidise smaller lending entities as well?
But wait a moment. That means preferential treatment for ALL LENDING entities vis a vis other sectors of the economy. What to do?
I know: why not subsidise EVERY FIRM IN THE COUNTRY with taxpayers’ money!
But wait a moment (again). That means impoverishing the poor old taxpayer. Now what’s the solution to that? Scratch head…... I’ve got it: hand out taxpayers’ money to taxpayers.
As Tim Worstall put it in answer to the politician wanting to know why people hated politicians:
“Because you’re ignorant fuckwits who steal all our money” .
Hat tips to Mike Norman’s blog and Washington’s blog.