Govt want to return lending to 2007 levels.

tomstickland

Even the Council of Mortgage lenders think it's "not prudent".

The government wants RBS and Lloyds TSB to boost lending to house buyers and small businesses as a condition of its injection of £37bn into the banks.

http://newsvote.bbc.co.uk/1/hi/business/7667072.stm

Seems crazy to me.

Call me cynical, but could it be that they just want to restart the party so it's all wonderful in time for an election?

Cannon_Fodder

luvpump

The Whole Problem Was caused by too much Government & Personal debt.. So how does GB fix the Problem, More Government & personal debt !!... Great..& the only way to fund this is by taking the lid off inflation & debasing the Pound !! .. :T

skap7309

Honestly, i am sat here practically choking on my lunch. Debt has caused the mother of all crisis and what do they do once taxpayers money is given the go ahead? ''Oh its ok, lets go back to how it was JUST before it all collapsed''........

Speechless.

Conrad

As I keep saying, restricting lending will hurt the have nots the most. Less than 1% of borrowers get anywhere near repossession. Tightening rules too far will bar borrowers from home ownership, people that otherwise would have been able to buy and keep thier home.

Thinking everyone has payslips and borrows 3 x income, is a huge misreading. Millions of people do not fit the hole. By and large they are not dodgy, just complex.

skap7309

Conrad wrote: »

Tightening rules too far will bar borrowers from home ownership, people that otherwise would have been able to buy and keep thier home.

I disagree. If not as much debt is available for people to get into house prices MUST drop to bring it all into line.

ad9898_3

There is no party to re-start, this particular statement that has been put out can be read in many different ways, it is typical Labour- spin, mis-representation, ambiguous. It means very little to be honest.

StevieJ

skap7309 wrote: »

Honestly, i am sat here practically choking on my lunch. Debt has caused the mother of all crisis and what do they do once taxpayers money is given the go ahead? ''Oh its ok, lets go back to how it was JUST before it all collapsed''........

Speechless.

The govts of the world will now have a huge stake in rising house prices, for example derivatives will reverse the decline if US house prices increase, increasing the value of their investment in the banks.
Whatever people keep saying the current problem relates to US house prices not UK.

tomstickland

PM Questions, from 8 minutes in

goes a bit quiet for a while, then more fun at 20 minutes in

then 22

27:30 dodging the question on apologising about economic mess

http://news.bbc.co.uk/1/hi/uk_politics/7671776.stm

luvpump

The agenda being... lets give the Housing Market one last shot of Heroin in the arm, and cross our fingers that we can get to the next general Election befor it collapses altogether !!!

fc123

As I understand it from The Standard reporting the Govt have attached 3 conditions.
1; no dividends until debt to govt repaid; banks say no...say need to pay divs to pension funds...to pay the pensions.

2; restrictions on top peoples pay and bonuses; banks not keen.

3; restore lending to businesses and homebuyers (don't know if they include BTL in that); banks not keen as want to reduce risk.

I may have it wrong.

But he who pays, says....so will govt ask for £££ back if they can't agree?