You Know What We Need? State Owned Banks!

North Dakota has a state owned bank, in fact Kent Conrad tried to get an exemption for it from the federal takeover of student loans, now other states are considering it.

What in the world could go wrong with this idea?

Bank of North Dakota officials said that at least 10 states have turned to them for guidance, including some states, like Michigan, hardest hit by the financial crisis. They include California, Florida and Illinois, where a bill to create a state bank already is under consideration by the state legislature.

Michigan State Sen. Hansen Clarke hopes his state will be the first to follow North Dakota's lead and establish what he and others call an economic development bank.

Michigan currently carries the dubious distinction of having the highest unemployment rate in the nation.

"What I'm trying to do is help create jobs for probably one of the most economically-depressed states in the country," Clarke said. "The state economic development bank would be one way to be able to provide small businesses the capital they need to expand and create jobs."

The people who have run their states into financial holes so deep they can't even see the sky anymore think they are qualified to run a bank? It would be funny if it weren't so damn scary.

And gee, what are the odds that a bank run by a state government would wind up pushing loans to politically connected individuals or groups? Can you imagine what kind of loans say, the State Bank of Illinois would be making to ACORN approved groups or Tony Rezko connected politicians for home purchases?

Guess who would be on the hook for those bad loans? Yeah, all of us.

Insanity.

posted by DrewM. at 01:43 PM

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