Lilico is a hard-line free marketeer. I like to read from both 'sides' to try to get a balanced picture.Ok.... Ive read the article (and the comments).
My first thought was that this read like a rather earnest PhD students paper. It opened a debate by taking a rather one-sided view, hoping that others would fill in the blanks!
I also thought that the case regarding the loss of private property to government subsidised institutions (subsidised by the taxes of ordinary people, who then in theory became the owners of that property) wasn't well argued (hence some of the comments).
you picked out the two most pointed statements in the whole article.
I agree with the first statement absolutely, but the second (I think...) is muddled.
I can see that the writer is stating that those who invest their private property in banks are doing so at their own risk and therefore, should not expect to be helped by a bail out when things go wrong. After all, we live in a democracy where the decisions we make on the use of our property should be ours, not the states.
But the writer appears to assume that it is only the rich who do this.
As at least one person commented, to let the banks collapse would hit the poor and particularly the people in the middle, whose pension funds are invested there, much more than it would hurt the rich.
Perhaps more later....
The problem is that by going overboard for free market policies we've backed ourselves into a corner. The central issue is simply that by allowing banks and other such institutions to be 'too big to fail' because as you rightly point out the 'little people' and indeed the whole economy would be hurt we have created a situation where these institutions know they have total immunity, no matter what they do, what risks they take as the taxpayer will bail them out.
I cannot for the life of me see why banks that are saved by taxpayers' money should not be immediately nationalised. That would guarantee liquidity and allow for some democratic control over them.
At the moment our 'leaders' seemed to be paralysed....decisions have to be made and inevitably these will hurt some people. Far better to hurt those who can stand the pain.