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£140Bn fund for small business and mortgage lending

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Comments

  • pqrdef
    pqrdef Posts: 4,552 Forumite
    ILW wrote: »
    I think the idea is to encourage business. Not to get people to buy things they cannot afford on the never never.
    But business needs customers. Who are they going to be, if not people buying things they can't afford on the never never?
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • The-Joker
    The-Joker Posts: 718 Forumite
    Call it what you like, they are trying to avoid calling it QE because really it should be about QE7 by now. It all amounts to the same thing. We have a debt collapse which is deflationary, so the currency creation is getting turned up and up to fight the deflation. It always ends badly every time this has been done throughout history.
    The thing about chaos is, it's fair.
  • The_J
    The_J Posts: 1,250 Forumite
    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?

    Absolutely. Unlike you I am not a hypocrite.

    If people want to pay to prolong their life by a few months then buy insurance that will pay out in that eventuality. Don't ask the taxpayer to do it.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    They've decided to do a phone in thing on the £140bn. They;ve decided to pick someone from a BTL investment agency, a BTL investor and a "housing expert".

    One suggests 100% mortgages given to the young only.

    Brilliant!

    If an expert on 5live is saying that it's because they invite guests who can be relied upon to create a lively and interesting debate rather than their expertise.

    I suspect 100% mortgages have been consigned to history - bet the 'phonelines were buzzing though!
  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    edited 15 June 2012 at 2:39PM
    wotsthat wrote: »
    I suspect 100% mortgages have been consigned to history

    They'll be back in a few years. It's almost certain. Any mechanism that supposedly gets more people on the ladder and whilst simultaneously boosts prices is political gold. Both Labour and Tory would relish their return given time.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite

    I find it simply fascinating that after all that has gone on over debt, were now at a point where were mulling over how we can incentivise people to take on debt. Utterly fascinating!! Makes a mockery of everything I was taught about money.


    Yep not only is everything costing us more, not only are they taxing us more, they now want us to get into more debt to sort the mess out.

    Simples.

    Having a wonderful effect on the pensions liabilities that are now all red lining too.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    pqrdef wrote: »
    The way it's shaping up, it's like the BoE is injecting venture capital into these lucky companies, and the bank is just an introducer, taking a commission but not taking an interest.

    This is a lot like the role of the front-line banks in the subprime scandal. Their best game was just to write as many mortgages as possible and not worry about the quality.

    They didn't have much trouble forcing people to borrow. They just made offers that people couldn't refuse.

    If you want to know how and why the U.S. created the subprime mess, just watch the action replay. All we need now is for the BoE to say it's going to sell on packages of these loans as Growth Bonds, along with the infrastructure stuff.


    Progress being made then!


    Yep like any agent take the commission and run.

    I am sure George and Merv know exactly what they are doing though and would never allow that to happen again.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • geoffky
    geoffky Posts: 6,835 Forumite
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    On another FT article they are mulling over how we can "force" (through incentives) people to borrow this money, as if we can't, it won't work.

    Without this funding there won't be money to lend. The BOE is shielding the UK banks from the cost of money on the wholesale money markets.
  • Creating more currency will do more harm long term but for now it kicks the can down the road. Make the problems worse for the future. But for now they just want the easy option.Yes there will be more and more currency abuse all around the world. There will come a time when no matter how many zeros it will not make much difference because people have lost confidence in it.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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