Now the banks are the target

[willwright]

I see your point Will, but if that's the idea, what purpose would that serve?
I'm not an economist by any stretch, I'm a writer and all I can see is 'divide and rule.'

Gringoboy I'm not saying it makes sense. However look at YPF whom the government decided wasn't investing enough in Argentina, it got nationalized. By dictating to the banks that they should be lending at below cost sounds like a similar strategy. Of course the banks are going to fight this tooth and nail. The government will then start to complain that the banks selfish actions are hurting the economy. Then a few months later to protect the country the banks will be taken over by the government. This has certainly happened before in South America and other places. Would that serve a purpose, yes for the government, another piggy bank of ready cash to rob.

 

[solerboy]

I cant see how the banks will be too concerned lending their clients money at rates lower than the rate of inflation. They dont pay their clients any interest.