There are many, particularly on the right of the political spectrum, who seem to think that there is some sort of unwritten law that states all nationalised companies makes losses, are badly run and cannot compete with the private sector. In truth, there is no reason why this must be so, and with good management a nationalised company could be run just as well as a private company with the profits returning to taxpayers rather then overseas owners or shareholders. So you would imagine that labour would want to set a benchmark by showing Northern Rock, now nationalised, to be the very example of a well run state owned company.
So why is it that they are reporting on TV this morning that Northern Rock are repossessing houses at twice the rate of other banks and building societies ? The reports on the BBC this morning suggest that it is nothing to do with Northern Rock having more mortgages in debit, but the fact that the nationalised Northern Rock is less willing to work with those mortgage holders to keep them in their homes.
When the government are desperate to stop the housing market spiralling downwards at a greater rate, the Northern Rock's decision to repossess homes at an increased rate throws more cheap houses on to the market and makes things worse.
So what is the governments response to the Northern Rock doing what it is doing ? Silence. Where is Gordon Brown, the saviour of the world now ?