How would you stimulate the uk economy?

pqrdef

HAMISH_MCTAVISH wrote: »

Don't forget that profit is calculated AFTER cost of funding.

Well if NRAM can fund itself in the market now, it could pay off that government loan next week and give Gideon a nice pre-Budget bonus.

Or perhaps it can't fund itself in the market at the same price as the government loan. In which case those profit figures might be just a tad artificial.

Radiantsoul

HAMISH_MCTAVISH wrote: »

Sorry, but I really don't know where you get this idea from.

Retail banking operations are designed to do exactly that....

Deal with a lot of small business customers, get to know their businesses, and lend money to them. It's why banks employ business account managers.

Even business bank lending is credit scored these days though. There are still business account managers but they are not often going to overrule the computer.

gagahouse

HAMISH_MCTAVISH wrote: »

Just.... wow.

Banks are in the business of lending money. End of story.

What on earth do you mean by "providing equity"?



There is no need for "security" on every type of lending.

I have over 2 decades experience managing businesses at a senior level, ranging from SME's to multinational companies, and I can assure you that at least since the late 1980's a profitable company with a good trading history would have no problem at all in securing working capital from their bank on production of a contract.

And not at bl00dy 14.5% above base rate!!!

The current absurd behavior of the banks is jeapordising the future of our economy.

People should be outraged.

Not making excuses for them...

You're right but here's an excuse: they're insolvent, allowed to disguise this via mark to model instead of really marking to market, allowed to rebuild their capital with all kinds of support (QE, ZIRP, govt guarantees) at the expense of savers and borrowers alike, given cover to do so by 'regulations' like Basle 3 or CRD 4, allowed to pay themselves the same nice fat bonuses, and most of all, they don't give a flying !!!! what anyone thinks or can do about it as they have the system locked down.

Have a nice day

HAMISH_MCTAVISH

Radiantsoul wrote: »

Even business bank lending is credit scored these days though. There are still business account managers but they are not often going to overrule the computer.

OK, please stop.

You're embarrassing yourself now...:(

HAMISH_MCTAVISH

gagahouse wrote: »

they're insolvent, allowed to disguise this via mark to model instead of really marking to market,

True.

But it should never have been allowed to pan out this way.

The government allowed a controllable liquidity crisis to spiral into a far less controllable solvency crisis, through too little too late in the way of interventions.

When markets become dysfunctional, it is the responsibility of government as market regulator and central bank as lender of last resort to ensure markets regain functionality.

In that, they failed.

Because here we are nearly 5 years on and dysfunctional lending markets are throttling the recovery.

allowed to pay themselves the same nice fat bonuses, and most of all, they don't give a flying !!!! what anyone thinks or can do about it as they have the system locked down.

Sadly, also true.

kabayiri

I will stimulate the UK economy by buying some more audio equipment, made by a British company using a majority of British components. I expect it to last a long time, and to support that I will have it serviced by a local company.

I do of course realise this is completely out of order. I should of course buy some Chinese manufactured flavour of the month item heavily advertised as being the cool thing to own. Such an item would of course need to be ditched in flavour of the next item a year later.

All in all then, not a very significant stimulus then, but to steal a catchphrase "Every little helps"

Radiantsoul

HAMISH_MCTAVISH wrote: »

OK, please stop.

You're embarrassing yourself now...:(

Yeah I only used to work for Lloyds TSB advances, and you are a professional internet troll.

Thrugelmir

HAMISH_MCTAVISH wrote: »

Profit is calculated after funding costs.

Debt is repaid from a positive cash generation . Not from profit. A common misconception.

Fella

Aggressively slash red tape in every way possible. Most especially for small businesses.

Invest in infrastructure.

Offer decent tax concessions to any companies prepared to setup in areas like the North East to try to reduce their disastrous reliance on public sector jobs.

Reduce employers NI to 5% (or even 0%) for all net new employees for the next two years.

Renegotiate the UK's EU membership & repatriate the majority of the laws of this country to where they belong - in this country.

Simplify the tax system. It was made horrendously over-complex by the last Govt with the net result it costs far more to administer, is understood by almost nobody & is easier to get around by the few people able to pay clever accountants to do so.

Don't even consider a mansion tax.

Abolish the nonsense 50% tax rate, it brings in nothing & was purely a political device brought in by Labour because they knew the Tories would both hate it and not be able to easily get rid of it.

Reduce stamp duty & do away with the ludicrous system whereby each time a new threshhold is breached the higher rate is payable on the entire price.

Abolish HIPs & pointless pseudo-green measures like forcing the entire country to use mercury-filled lightbulbs that they hate.

Abolish the ridiculously outdated licence fee & let the BBC exist on it's own mettle like every other broadcaster has to. Adverts on the BBC would be no big deal - they already fill their airtime with adverts for themself anyway.

Reduce the mininum wage for under-21s.

Slash benefits for anyone young & able-bodied. Give the amount saved to people old, infirm or genuinely in need of help.

Increase the national pension age sooner. The idea of getting a pension at 65 was devised when they expected people to peg it at 66. Either increase the age to something sensible or educate people that they need to be whacking more like 30-40% of their earnings into their pension pot if they want to retire at 65 & spend the next 30 years being a Saga lout.

End QI.