Creating our Own Credit: The Growing Movement for Publicly-Owned Banks

Michigan has an unemployment rate of 14% and has been particularly hard hit by the nation’s economic downturn. Virg Bernero, mayor of the state’s capitol and a leading Democratic candidate for governor, proposes that the state relieve its economic ills by opening a state-owned bank. He says the bank could protect consumers by making low-interest loans to those most in need, including students and small businesses; and could help community banks by buying mortgages off their books and working with them to fund development projects.　

Bernero joins a growing list of candidates proposing this sensible solution to their states’ fiscal ills.　 Local economies have collapsed because of the Wall Street credit freeze. To reinvigorate local business, Main Street needs a heavy infusion of credit; and publicly-owned banks could fill that need. (more)