£140Bn fund for small business and mortgage lending

Graham_Devon

Tell you what grates on me.

Banks can seemingly get money shovelled at them, regardless of promises broken. Last time round there would be sanctions for not lending QE out. The sanctions appear to now be "here, have more, on even better terms...."

But if you need cancer drugs as a patient......well, you get a sucking air through teeth noise and told it's too expensive.

I know the two don't relate in terms of issues, but I'm getting sick and tired of there being no money for the man on the street, but billions pulled out of the hat for bankers and the city.

Really get the feeling we are going down the same route as Greece now. Not in financial terms, but in terms off hanging the poor out to dry to protect the interests of the rich.

They;ve just created over 14x the amount of money they were going to save by cutting benefits to the poorest in society. 14x as much! yet the poorest will have to deal with it and still face cuts.

I've read this morning that there is likely to be more QE on the way, as this is what Mervyn hinted at. This is on top of this £140bn. £100 billion extra QE is expected within the next 3 months.

Graham_Devon

Sibley wrote: »

I said a long time ago that the government would never allow house prices to crash.

This latest move by MK will ensure house prices rise.
The market will go mental once money is available.

You are right on point one.

But on point 2 you are wrong. You said this at QE1 and QE2. It didn't work.

Rinoa

Graham_Devon wrote: »

I'm getting sick and tired of there being no money for the man on the street, but billions pulled out of the hat for bankers and the city.

The banks have to repay every penny of money loaned to them, plus interest. If you think banks are making fortunes, have a look a their share prices.

collywollys

Another night lavishing it up at Mansion House in the dinner suits, these crooks are on a different planet, all of them making fortunes of these little sweet deals !!!

Graham_Devon

Rinoa wrote: »

The banks have to repay every penny of money loaned to them, plus interest. If you think banks are making fortunes, have a look a their share prices.

Big wow.

Of course, we, the population could have done the same if we had access to the cheap money. But no. We will have to pay the banks a higher price to use the money we, as the taxpayers, are guarantors on.

Would be better just to set up a national bank and offer cheap, long term loans to business and the populace. Let people consolidate their debts via a long term, low rate loan with the state.

Get money spent in the economy again, supporting jobs and local business. Support families in the ability to bring up their children securely etc.

I feel like I'm on my soap box, but honestly, this has really grated on me, more so because I'm seeing more and more people become victim to the high cost of living around me. People unable to afford the bill to service / fix their car any longer, but needing the car for work. It's a viscious cycle of inflation and no pay rises, but everything going up around us. People are just trying to get by, but more and more are falling over.

The worst thing about it, is that this makes Ed Balls look good. His suggestions of cutting VAT and getting money to the people is actually now a better proposal than what's currently happening.

Graham_Devon

Have just read Pestons blog, and although obviously welcomed, bankers are suggesting there are 2 inherit problems with this.

1. People who can borrow don't generally want to borrow at the moment. They are too busy paying down debts and trying to secure positions to take on more debt.

2. The people who desperately need debt at the moment, are the failing, overlevereged and struggling. The very people the banks simply will not lend to due to the risk.

Therefore, to sum up, the credit certainly won't get to those who need it. Be that business or the householder. It will go to those who find it advantageous to their current positions (i.e. investors etc).

ILW

I would suspect that much of it will go to BTL investors expanding their portfolios. Cannot see that helping the economy much though.

homelessskilledworker

Rinoa wrote: »

The Bank of England is to offer money to high-street banks to kick-start mortgage and small business lending to prevent loans being rationed for many families and entrepreneurs, the Chancellor announced.

http://www.telegraph.co.uk/finance/financialcrisis/9332570/140bn-to-kickstart-stagnant-economy.html

"I hope the fund could be available in a few weeks" said Merv.

Seriously great news, it really is if it happens, and if it was only true.
Call me an old cynic, but this just ain't going to happen:)

kabayiri

As someone who detests the likes of Wonga (there, I've said it), I'd like to see money pumped into Credit Unions and encourage people who currently need payday loan services to build relationships with their local CU instead.

It's obvious there are a significant number of people who rely on income from the state, whether they are working or not. When these people turn to expensive payday loans it is obviously the taxpayer who is in effect paying the interest on these loans.

We should aim in some way to reduce the cost of credit in every tier in society.

ILW

kabayiri wrote: »

As someone who detests the likes of Wonga (there, I've said it), I'd like to see money pumped into Credit Unions and encourage people who currently need payday loan services to build relationships with their local CU instead.

It's obvious there are a significant number of people who rely on income from the state, whether they are working or not. When these people turn to expensive payday loans it is obviously the taxpayer who is in effect paying the interest on these loans.

We should aim in some way to reduce the cost of credit in every tier in society.

I think the idea is to encourage business. Not to get people to buy things they cannot afford on the never never.