TESCO Bank!

A while ago I wrote that at the same time that Money Capital - or sections of it - were suffering as a result of the Credit Crunch, there would be undoubted winners within that same process. Whilst, huge dedbts had built up, even huger cash balances had built up on the Balance Sheets of some companies as a result of the higher rate of profit, and its translation into increasing volumes of profit as the Long Wave boom proceeded over the last 10 years.

I argued that other sections of Capital - Industrial Capital and Merchants Capital - that had built up these large csah balances were already beginning to encroach on the territory of the Money Capitalists. Some it has to be said, such as GM with GMAC, and GE Capital not so well, as they made teh same mistakes as the Money Capitalists themselves. But, others such as Tesco had succesfully used their huge cash flows to finance entry into the provision of Credit via Credit Cards, Loans etc.

Its just been announced that TESCO is now to open 30 banks in its stores, and is likely to begin offering mortgages! Perhaps, yet another sign that the Credit Crunch is ending, and that finance is beginning to find its way around the economic system!