Why Not State Banks?

Despite the huge infusions of bailout capital by the federal government, many banks continue their reluctance to lend, even to creditworthy businesses and individuals. If nothing else, the banking crisis of the past 18 months has shown that when the chips are down, it’s the government and taxpayers who do the bidding of the banks, not vice-versa. The common wealth is commandeered to shore up private wealth because "the free market" is seen as the only realistic vehicle for advancing the common good.