BoE to back funding for High St Banks?

mdj1

Great idea, but they can't. It would fall foul of the competition rules.

Guy_Montag

brummybloke wrote: »

dont know why the government doesnt have its own 'lending' so to speak?.

rates for the public to borrow without the open market hiking up the interest rates.

obviously not a flawless idea, however it would provide security if there were insurances like when people purchase social housing ( cant sell straight away and so on).

just think, the government would also get lots of tax for the same thing, tax you on the purchase, the borrowing and the paying back.

it would also force the money market to become more competitive rather than keeping any decent deals to themselves and joe public paying for it.

as they pretty much 'own' northern rock anyway, i wouldnt have thought it would be overly difficult to do, it may also make some of the snivel servants who do little, work as there would be something for them to do.

For the last ten years brummybloke's govt. lending scheme would be horrifically unattractive as they would have to lend on sensible levels to people that could afford a mortgage: where banks have been lending to anyone who could fog a mirror. Now that banks realise that just because you have a pulse it doesn't mean you can afford a house, the govt. lending scheme would start looking attractive.

The real problem is what would happen if a lot of people defaulted on their govt. backed mortgage? Can you really see HM Govt. evicting a 10,000 people during an election year?

Nah let the markets sort it out for themselves.

iain1970

lic wrote: »

What GB fails to understand is that although he might have a big say in what the BofE does, he has no say for the banks. Their loyalty it to themselves and share holders, why would they care about us?

Didn't Gordon Brown cast all the Governments responsibilities aside in 1997? It's a bit rich him now speaking out now isn't it and begging on our behalf?