Allister Heath in City AM warns PM Gordon Brown not to use the nationalisation of the banks to over-inflate the housing market once again: “The government is on much weaker ground with its attempt to revive lending to consumers and homeowners by fiat.” But he’s missing the obvious (oops!). The Chancellor is over-joyed at the ability to ‘persuade’ the nationalised banks to lend again. 

He sees it as being dealt a winning card; it will allow him both to stave off recession by re-inflating the housing market and consumer consumption, and so win the votes that matter for the next General Election — a stroke of incredible luck & genius to boot? Only time will tell.