Darling considers second bailout...

mvengemvenge

It was only a matter of time...

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5434660.ece

feisty1

inevitable i would say, he better warm up the money printing machine as well.........

Cat695

so does that mean our childrens childrens childrens children is going to pay it off now??

well I guess no one will be wanting to get into cryogenetics then......Labour would probably hit you with a "dead tax" when you were brought back to life

treliac

How much more is he going to throw away? The banks are not willing to play.

globalds

treliac wrote: »

How much more is he going to throw away? The banks are not willing to play.

http://business.timesonline.co.uk/tol/business/economics/article5431904.ece

The Bank of England’s results also showed that access to unsecured consumer credit also became harder during the past three months, while corporate credit availability also tightened. Business leaders have led vocal demands for the Treasury to take action to compel banks to ease their access to ready finance at a reasonable cost.

lynzpower

Whitehall sources said that ministers planned to “keep the banks on the boil” but accepted that they need more help to restore lending levels. Formally, the Treasury plans to focus on state-backed gurantees to encourage private finance, but a wide range of interventions is on the table, including further injections of taxpayers’ cash.

:wall: :wall:

Richard Lambert, the Director-General of the CBI, said yesterday: “The Government is going to have to do more to restore credit flows across the economy.”
He said that the car industry was especially vulnerable: “Without access to credit or loan guarantees on commercial terms, this vital part of the economy will incur lasting damage.”

So? We all need to drive less- forecourts are full of unsold cars that people have no desire to buy :wall:

Halifax, Britain’s biggest mortgage lender, reported that the price of the average house fell by more than £100 a day last year. It said that the average house ended the year down in price by £37,178, or 16.2 per cent.

good. Im still trying to forget a mere 18 months ago the whooping n cheering when HPI was going up by 200 a day in london and everyone was like this ----) :T:T

The idea would mirror the initial proposal by Henry Paulson, the US Treasury Secretary, to underpin the American banking system by buying up toxic assets. The idea was abandoned, ironically, when Mr Paulson decided to follow Britain’s plan of injecting cash directly into troubled banks.

Do you get the feeling that no one really knows what to do?

What about the central tenet of Capitalism- if you are going to do it - at least do it- laissez faire. Leave well alone and lets see what happens, honestly it cant be any worse than all this ill-concieved tinkering. Surely

SGE1

It would be interesting to see if there are any discrepancies between banks' lending. At the end of the day, if it's not profitable enough, banks won't lend - they're too paranoid at the moment anyway. I suppose only nationalisation can get resume lending...

Cat695

SGE1 wrote: »

It would be interesting to see if there are any discrepancies between banks' lending. At the end of the day, if it's not profitable enough, banks won't lend - they're too paranoid at the moment anyway. I suppose only nationalisation can get resume lending...

But lending will just drag this out longer....why can people not see that


over lending got us here in the first place!

dopester

SGE1 wrote: »

It would be interesting to see if there are any discrepancies between banks' lending. At the end of the day, if it's not profitable enough, banks won't lend - they're too paranoid at the moment anyway. I suppose only nationalisation can get resume lending...

Do the Labour politicians really want the banks to lend?

I think or hope it is just bravado... to be seen trying to help, whilst whipping the bad-banks for not lending freely.

Perhaps not in all instances, like some businesses with full order books and a reasonable looking future which are being squeezed for operating loans as well.

In the 1930s many such a business went to the loan-sharks for help, although perhaps not at the rates we associate with sharks today. Anticipatory borrowing early, and putting it in a lower-rate savings account was the way to deal with it... better than a loan shark or seeing your healthy business cut from funding.

House prices crashing, and other assets falling in value, and bad debts all over.. of course they were going to need another bail-out (can Labour continue the bail-outs though for every institution and major business or will the time come to let some fail?) - but that doesn't mean the doors will open for the plasma tv gangs to feed on easy credit.

SGE1

Cat695 wrote: »

But lending will just drag this out longer....why can people not see that


over lending got us here in the first place!

Not lending per se, just lending to the wrong people. I think there should be a reasonable level of lending, to allow people to start up businesses, invest some of their disposable income in property - these things shouldn't only be available to the very very wealthy.

lynzpower

Cat695 wrote: »

But lending will just drag this out longer....why can people not see that

over lending got us here in the first place!

Of course they know this. But they have such contempt for us that they try to pretend to us that if we carry on spending on stuff then all will be well - like giving sweets to a crying child.

WELL IT WONT.