Vince Cable was right after all. Despite government dithering and trying to avoid the inevitable, it has been announced that the Northern Rock will be nationalised after all.
Despite Tory claims that this shows a catastrophic failure on the government's part, at least the government have finally made a decision on this. Remember, the Tories have absolutely no stated policy in this topic and whilst opposing nationalisation have produced no alternative policy with which to lead on.
What this does show though is that after three months, after claims at the time that Vince Cable did not know what he was on about and Labour cliams that the Lib Dems were scaremongering, it is finally clear that the Lib Dems, an opposition party, have a greater udnerstanding of a serious issue like this than the government does.
Perhaps the Lib Dems are just lucky to haev a top class economist like Vince Cable in the party who could see the writing on the wall. However, how much tax payers money has had to be poured in to Northern Rock in the past three months whilst the government have prevaricated and postured over this ? How much money has been wasted by the various groups bidding to take over Northern Rock ?
Nationalisation is the least worst option, but it should guarantee that taxpayers are, in the long run, fully compensated, but this whole business is another nail in the coffin of Labour's claims to be able to run the economy, to have their finger on the pulse of business and be financially prudent.