£140Bn fund for small business and mortgage lending

wotsthat

homelessskilledworker wrote: »

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:)

I would have thought the unlocking of the mortgage market for hard working families would be terrible news for those sat on the sidelines hoping for a crash.

angrypirate

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.

Your first point is very different to your second point. Although it has confirmed my thoughts that the government see inflation as the way out. So in cash terms Sibley, you are right, your house price wont crash. In real terms - watch it plummet. We'll all be millionaires, 1 penny sweets will be 1 pound sweets and a loaf of bread will cost £15.

The_J

Graham_Devon wrote: »

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

What, someone should get really expensive drugs that may or may not work, may only extend life by a few months and deny treatment or facilities that we know to work to people who need it?

People need to know when their time is up and accept death with grace and humility.

homelessskilledworker

wotsthat wrote: »

I would have thought the unlocking of the mortgage market for hard working families would be terrible news for those sat on the sidelines hoping for a crash.

would you!

lemontart

if I am not mistaken is that not what quantitative easing was supposed to have been for?

Kennyboy66

Graham_Devon wrote: »

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).

This hits the nail on the head. Businesses can borrow at ridiculously low rates if its secured and they are putting up a big deposit.

Between 3.4 and 4% APR.

It's like pushing on a string - the appetite ain't there.

HAMISH_MCTAVISH

The bank funding scheme will allow high-street banks to “swap” their assets, such as their mortgage books, with the Bank of England in return for money they can loan to customers.

A good start, anyway.

When markets become dysfunctional, it is the job of central banks and regulators to restore functionality.

What we're seeing here is a very small step down the right path to doing that.

£140bn is nowhere near enough, it would need to be many times that figure every year for the next few years just to get us back to where we were before, let alone compensate for the lost growth.

But it's a start, and so should be applauded.

Sapphire

The_J wrote: »

What, someone should get really expensive drugs that may or may not work, may only extend life by a few months and deny treatment or facilities that we know to work to people who need it?

People need to know when their time is up and accept death with grace and humility.

Lovely – what a charming human being you are. A perfect example of modern 'thinking'.

Presumably you would apply the same argument if it were you and close members of your family that were affected?

Graham_Devon

Just heard on the news that bankers expect another announcement within the next couple of months that not only will this £140bn be available, but the BOE will become guarantor to all of the money lent under this scheme to make sure that the lending is chanelled to those who pose more risk rather than the banks denying the potential loan.

Bankers state the BOE needs to remove the risks off the banks balance sheets altogether to allow lending to flow smoothly.

The announcement that more QE is possibly on the way started a sell off off the pound, which has now recovered on the back of the ECB pledge according to analysyts.

ILW

Sapphire wrote: »

Lovely – what a charming human being you are. A perfect example of modern 'thinking'.

Presumably you would apply the same argument if it were you and close members of your family that were affected?

Sadly, choices have to be made.

If you were given the choice between giving one person a treatment that would maybe give them 1 month extra, or giving 100 people a treatment which would massively improve their quality of life for 5 years or so.
Which would you choose?