The Herald is fortunate indeed to have writers of the calibre of Ian Bell and Iain Macwhirter.

The Herald is fortunate indeed to have writers of the calibre of Ian Bell and Iain Macwhirter. Mr Macwhirter's analysis of the banking catastrophe and Mr Bell's understanding of its underlying processes are far ahead of anything else in the mainstream press. In his brilliant essay (The Herald, November 15), Mr Bell laid bare the reality of what we face in a stunning analysis. But his most important words were: "Why must we always grow?" Like a good advocate, Mr Bell well knows the answer to his question: because finance capital insists that we grow to pay its imperial tribute. Compound interest on paper instruments expanding exponentially imposes impossible demands on a real economy bedded in finity. But in its attempts to pay its dues, the real economy is wrecking the planet, and attempting to ramp up its game results in a scenario by which finance capital wrecks the real economy. A crash we are witnessing now.

But things are, in fact, worse than even Bell and Macwhirter report. This crisis is far more serious than the Great Depression. All major sectors of the global economy are affected. Recent reports suggest that the system of Letters of Credit, as well as international shipping, which constitute the lifeline of the international trading system, are potentially in jeopardy - thus killing the recent rescue efforts at birth.

The bailout at taxpayers' expense is contributing to a further process of destabilisation of the financial architecture by transferring large amounts of public money into the hands of private financiers. This, in turn, will place an unprecedented concentration of financial power in even fewer hands, driving large sectors of industry and the services into bankruptcy, leading to the layoff of tens of thousands of workers, thus simultaneously further depressing the real economy, while exacerbating the capital accumulation that caused the initial problem.

But all is not doom: bankruptcies and foreclosures are money-spinning operations. Real assets are snapped up in the fire sale. The institutional speculators and the hedge funds have cashed in on their windfall loot.

As a result of these developments, which are directly related to the financial meltdown, the entire ownership structure of the real economy concentrates further in elite hands. Paper wealth accumulated through insider trading and stock market manipulation is used to acquire even more control over real economic assets, displacing the pre-existing ownership structures.

In short, recent "remedies" will simply make matters worse.

Remaining financiers are on a shopping spree. Once they have consolidated their position in the banking industry, financial giants, including Tony Blair's J P Morgan Chase, will use their windfall money gains and bailout money to extend further their control over the real economy. The next step will be to transform liquid paper "wealth" into the acquisition of real-economy assets.

For example, Warren Buffett's Berkshire Hathaway Inc is a major shareholder of General Motors. Following the collapse in its stock values in October and November, Buffett boosted his stake in oil producer ConocoPhillips, and mentioned Eaton Corp, whose price on the NYSE tumbled by 62% in relation to its December 2007 high.

None of this is accidental. The difference this time is that we can see it happening. The answer to Mr Bell's question is simple. We do not need to grow if we get finance capital off our backs. Our governments must utilise their new-found interests in the finance markets on behalf of their true owners: its citizens. We must either take these into true public ownership - or, better still, let them collapse and start a parallel rational public banking system - like Benjamin Franklin's in revolutionary Massachusetts. If they don't, we need to elect politicians who will. If finance capital succeeds this time, we will be reduced to serfdom for as long as it takes to wreck the planet completely. And that will not be long.
Dr John O'Dowd, Bothwell.

As I read the report on HBOS in the business pages of The Herald ("Chairman of HBOS says the N' word", November 15), I wondered which world Lord Dennis Stevenson is living in. As matters stand, the market is saying that the open offer at 113.6p is unlikely to fare any better than the rights issue earlier this year. This means that the Treasury will be left with a commanding share, if not majority, of the equity. This is effectively nationalisation. Shareholders voting will make no difference if they put up no money.

I would have thought that the current board would know by now how much confidence it enjoys.

The Lloyds takeover will do nothing to alleviate this position. The government has already shown an intention to use its influence. What can be expected when they are shareholders?
John Macpherson, Edinburgh.

Whether or not any further action results from the letter from Sir Peter Burt and Sir George Mathewson addressed to Lord Stevenson and the HBOS board, I for one was delighted to see their sentiments publicly aired.

Since the crisis facing HBOS erupted into the public domain in September, the silence of Lord Dennis Stevenson, chairman of HBOS, and Andy Hornby, chief executive of HBOS, has been deafening. There has been no evidence of strong leadership either for staff or shareholders, not to mention customers of the bank. The deal with Lloyds TSB surrendered at a cut price the independence of a once proud institution with a heritage of more than 300 years in the case of Bank of Scotland.

In my 35-year career with Bank of Scotland, I was always proud to be able to say that I worked for that great organisation both pre- and post-retirement some five years ago. It saddens me greatly to see HBOS reduced to its present parlous state. Like the majority of my colleagues, I was encouraged to invest my savings in shares of the bank. Having seen the value of these shares reduced to a small fraction of their previous worth under the regime of Stevenson and Hornby, I would at least have confidence that these seasoned bankers, Sir Peter and Sir George would be shrewd enough to explore all possible options before capitulating to the meagre share offering by Lloyds TSB.
Jim Fisher, Lenzie.

Shadow Chancellor George Osborne's latest comments on a run on the pound seem quite feasible.

Day after day it is losing value to other currencies in the world stage.

What a perfect time to drop the pound and turn to the euro, before it drops further in value.
Bob Harper, Anstruther.