Two of the basic socially useful functions of finance are credit and insurance. The basic banking function is providing credit. It seems to me the whole notion of spreading risk is an insurance function.
If it is true that the profit making motive warps private corporations' ability to carry out these functions optimally, then this would be the best justification of "nationalization" or state ownership of the biggest speculative and insurance companies. If this is true, I don't think it has been articulated by the big names such as Krugman or Stiglitz. Maybe Galbraith has (smile). Charles _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
