BOE WATCH: Weak Lending Raises Likelihood Of Further Stimulus

tomterm8

lemonjelly wrote: »

Freedom of contract Graham.

If I didn't want to do business with you, I don't see how the state could force me, unless it was a statutory function to which you had a legal entitlement...

Banks, along with other utilities, are different. The government, both historically and currently, sets the terms of business of a variety of utilities.

Besides which, the government owns quite a large percentage of the banks these days.

Graham_Devon

lemonjelly wrote: »

Freedom of contract Graham.

If I didn't want to do business with you, I don't see how the state could force me, unless it was a statutory function to which you had a legal entitlement.

Otherwise, in business, I am free to do business with whoever I (legally) choose to do so. Same way a customer has the choice to go elsewhere.

I don't see how the state can legislate to force a bank to lend? Moreso given the "crunch" came about as a result of irresponsible lending, & there are various campaigns against returning to those days...

Completely agree.

So why does the government / BOE think we should somehow force, and indebt the populace even further, banks to lend.

Just wish just one bit of regulation would be implemented that doesnt include more debt to "fix" a debt problem.

We just need regulation, thats all. The economy will sort itself out and plateau once things are properly sustainable.

puddy

i think i get the theory behind this now,,,, a bank wont leave their reserves with the BOE paying them hardly anything on it, they will be 'forced' to lend it to me for my new kitchen, hence making more out of their money

is that what the plan is?

Graham_Devon

The plan is simple. Theres an election soon, and the problems need masking.

After that, payback time.

puddy

oh, for a minute there i thought i understood what was going on

Graham_Devon

jenner wrote: »

oh, for a minute there i thought i understood what was going on

Sorry, it was more of a whnge than anything, but this government has done everything in it's power to mask stuff.

You were basically correct. The premise thats wrong though is the government / BOE is basically forcing them to lend to you. They would not do it normally in the environment we are in.

kabayiri

Why dont they print 6bn and buy 0.5bn of lottery tickets from now until Xmas?

That way the jackpot each week will be enormous, and every tom !!!!!! and harry will pile in, thus replenishing the treasurys coffers and helping charidee to boot.

Plus, the newly created super rich will go on spending sprees like theres no tomorrow.

Strikes me that my plan is more likely to reach peoples' pockets than the current approach.

puddy

well its also a big assumption that i want to borrow. mostly because of this site i have changed how i feel about borrowing money. maybe thats in line with other people (who dont use this site), i dont know

we have just moved. i purposely bought somewhere cheaper than i had previously thought about (136 as opposed to 170+), but that was also due to the fact that i 'lost' 70k on my flat.

theres a lot that needs doing, i really want a new kitchen, we need a new roof on the utility room and the rest is wants rather than needs. so i am putting a much longer timescale on it than i would have done previously so that im not tempted to borrow on the mortgage (as i used to do regularly) or put on credit cards, as i used to do.

i purposely made sure i bought something which meant all my debts could be paid off (cept the mortgage)

so why should the government or banks assume that im going to leap at borrowing money again, after all my planning and sacrifice?

mewbie_2

If they made the banks move into smaller premises, like some of those new build flats they can't get rid off, then the banks would have to lend because they wouldn't have so much room to keep all that money the government keeps printing.

And then they could make it law that everyone has to borrow say 10k and spend it on stuff to help move things along.

Graham_Devon

mewbie wrote: »

If they made the banks move into smaller premises, like some of those new build flats they can't get rid off, then the banks would have to lend because they wouldn't have so much room to keep all that money the government keeps printing.

And then they could make it law that everyone has to borrow say 10k and spend it on stuff to help move things along.

If I spent it on lapdancers, would I still get a taxbreak?