Does doing more of the same ever work?

IveSeenTheLight

Mr._Pricklepants wrote: »

Be nice to fellow moneysavers.

Your post was muddled, hence the confusion.

The scheme is indeed a recent scheme and will be extended for a year.
Furthermore, there will be more emphasis and incentive for lending to SME's as opposed to housing.

Funny thing is he is confused as I certainly was not.
He's confused in thinking I was confused.......

What a kerfuffle.....

wotsthat

Graham_Devon wrote: »

Funding for Lending has been extended today for another year. It's also been made a little bit sweeter for banks, encouraging them further to lend more.

Both this government and the last seemed to be in agreement that increased lending would be helpful in economic recovery. Both have been surprised just how difficult it is to achieve - not sure why given they want the banks to simultaneously improve capital positions.

I think banks will take full advantage of these schemes when they're ready to lend (if they see an improving economy and they're content with capital positions). Of course at that point we won't need the schemes so the banks will be making some nice low risk profits.

HAMISH_MCTAVISH

Graham_Devon wrote: »

What i said was this scheme will be running 7 years after the crisis.

The crisis is ongoing.

There will be no need for this scheme 7 years after the crisis ends.

Because the crisis is the lending drought, and it will only end when lending returns to a more normal position.

HAMISH_MCTAVISH

Graham_Devon wrote: »

It didn't really work last time around

Yet still you hold it up as a "prop" for housing.... Despite lending having decreased under the scheme.:rotfl:

System

Graham_Devon wrote: »

What i said was this scheme will be running 7 years after the crisis.

How come it's always you confused?

"Charles I walked and talked half an hour after his head was cut off".

Discuss ways of making this sentence less confusing.

CLAPTON

most people date the crisis as happening in 2007; so that would appear to be 6 years ago.

Graham_Devon

CLAPTON wrote: »

most people date the crisis as happening in 2007; so that would appear to be 6 years ago.

Yes, so when the scheme is run into 2014, that will be....ta da.....7 years.

Seems to be a lot of fuss over something so simple!

dktreesea

CLAPTON wrote: »

most people date the crisis as happening in 2007; so that would appear to be 6 years ago.

So extending it out to 2014 will make it 7 years ago.....

dktreesea

The government can't compel people to borrow nor bankers to lend. From a business perspective we seem to be about to enter a period of stagflation (low growth but high inflation, due to continuing QE and the resultant devaluation of the pound. This will be made worse by very little growth in wages or benefits to offest the inflation, leading to a greatly reduced standard of living for all).

A business contemplating this particular scenario will realise that their revenues could be about to drop of a cliff and will be paying back as much debt as they can afford to so they can survive through the coming lean times.

Thrugelmir

StevieJ wrote: »

So it has been running a year and now being expanded, must have been seen as a success then.

Is working. Whether lenders decide to use the scheme is voluntary. So no more more funding is being being allocated. Merely allows those Banks participating to continue.

If we want new banks (and smaller existing ones) to establish themselves quickly. Then they are going to need a hand. As the dominant players in the market simply dwarf them. Would take decades to grow and compete on a level playing field.