Why do Capitalist, when in trouble, always expect the tax payer to bail them out?

With the Bank of England,offering more credit to the financial sector, because they cannot get credit elsewhere!

They would be outraged if the Back of England offered mortgages and car loans.

Why do Capitalist, when in trouble, always expect the tax payer to bail them out?

It%26#039;s a good question, but banks and the whole financial sector are the bedrock of capitalism, and without them we%26#039;d have chaos, so the BoE cannot allow a large bank to fail.

Until about 20 years ago, the quid pro quo was that banks were very tightly regulated. That was the unspoken deal between banks and governments. But then Thatcher deregulated them and they started behaving like cowboys, offering loans to everyone. Building Societies de-mutualised and became banks, banks started offering mortgages, supermarkets became banks - it was a free for all. Which is (partly) why we%26#039;re in this predicament now.

The govt is right to bail out Northern Rock, because too many ordinary people would suffer if they did not. However, the hypocrisy of the large financial institutions is breathtaking - they want to be able to be totally independent of govt. with few legal restrictions, yet when it all goes pear shaped, they go running to the %26quot;nanny state%26quot;

Why do Capitalist, when in trouble, always expect the tax payer to bail them out?

Nobody has been bailed out. The Bank of England is only putting confidence back into the banking sector. They need to establish confidence in the money markets. The Bank of England is actually only doing it楹搒 job. There has been panic this week due to the credit crunch and what is required is stability. May I add that the tax payer will not be affected.

Why do Capitalist, when in trouble, always expect the tax payer to bail them out?

that%26#039;s the way things work.