As Washington tries to regulate Wall Street’s newfangled derivatives, government officials in at least a dozen states are considering a North Dakota solution: a 100 percent state-run bank.
Since 1919, North Dakota has operated the nation’s only depository of this kind, a genuinely socialist enterprise that spins tax revenues into loans for in-state farmers, students, and small-business owners. Unlike other banks, the Bank of North Dakota (BND) plows about half its profits into the state budget and that is one of the reasons the state fourished during the recession, with the nation’s lowest unemployment rate (about 4 percent) and one of the largest budget surpluses (more than$1 billion).
(READ the story in Newsweek)
I dislike how so many people are afraid of the word ‘socialism’. Granted, extremeist socalism (a.k.a. comunisim) kills freedom and dosn’t work, but moderated socialism (as demonstrated above) does have benifits for society.
Amen, DMWDP001!! What a nice story that you won’t hear/see in the Main Stream Media. Rock on, Good News Network!!
So if I understand this article correctly, this bank takes money from taxpayers, and loans it back to them with interest (“spins tax revenues into loans”). Of course this bank will be more profitable than private banks, because private banks have to pay interest on the money they loan (i.e. to the owners of savings accounts), and then has to give that money back to the owners when they want to withdraw it.