metalblue said:twinkletoes said:metalblue said:They want business to take on sustainable debt to pull them out of the shit but I'm just splitting hairs.
[youtube]http://www.youtube.com/watch?v=jpDxZUiZQ4E[/youtube]
That clip makes two points; the first being that normal inflation erodes government debt given enough time and that is indeed true...however the first thing the government need to do is to stop adding to the debt by living within it's means or austerity as it likes to be called.
The second point is that banks aren't lending to people at all and they are forced into the hands of firms like wonga...well it is true that credit is harder to get hold of but nowhere near impossible and plenty of people are able to do so, the banks like to make money...one way is lending money to people who pay it back.
You'll find balance sheets are better than at any time in the last 20 years.twinkletoes said:metalblue said:twinkletoes said:[youtube]http://www.youtube.com/watch?v=jpDxZUiZQ4E[/youtube]
That clip makes two points; the first being that normal inflation erodes government debt given enough time and that is indeed true...however the first thing the government need to do is to stop adding to the debt by living within it's means or austerity as it likes to be called.
The second point is that banks aren't lending to people at all and they are forced into the hands of firms like wonga...well it is true that credit is harder to get hold of but nowhere near impossible and plenty of people are able to do so, the banks like to make money...one way is lending money to people who pay it back.
If interest rates are so low then people won't put it in banks.
If there is no money from savers' deposits then they cant use them to print money out of thin air (factional reserve banking), to hand it out in loans.
SWP's back said:You'll find balance sheets are better than at any time in the last 20 years.twinkletoes said:metalblue said:That clip makes two points; the first being that normal inflation erodes government debt given enough time and that is indeed true...however the first thing the government need to do is to stop adding to the debt by living within it's means or austerity as it likes to be called.
The second point is that banks aren't lending to people at all and they are forced into the hands of firms like wonga...well it is true that credit is harder to get hold of but nowhere near impossible and plenty of people are able to do so, the banks like to make money...one way is lending money to people who pay it back.
If interest rates are so low then people won't put it in banks.
If there is no money from savers' deposits then they cant use them to print money out of thin air (factional reserve banking), to hand it out in loans.
Do you thinking people are keeping £100k under their beds?
They are but with more stringent credit tests, for example I was still able to take out a very large business loan last year to add to the one I got 18 months ago. So there is money there, but it's more difficult to get the approval, as metal said, for the reason that banks want to be more sure they are going to get the money back.twinkletoes said:SWP's back said:You'll find balance sheets are better than at any time in the last 20 years.twinkletoes said:If interest rates are so low then people won't put it in banks.
If there is no money from savers' deposits then they cant use them to print money out of thin air (factional reserve banking), to hand it out in loans.
Do you thinking people are keeping £100k under their beds?
So why arent the banks lending then?
SWP's back said:They are but with more stringent credit tests, for example I was still able to take out a very large business loan last year to add to the one I got 18 months ago. So there is money there, but it's more difficult to get the approval, as metal said, for the reason that banks want to be more sure they are going to get the money back.twinkletoes said:SWP's back said:You'll find balance sheets are better than at any time in the last 20 years.
Do you thinking people are keeping £100k under their beds?
So why arent the banks lending then?
twinkletoes said:SWP's back said:They are but with more stringent credit tests, for example I was still able to take out a very large business loan last year to add to the one I got 18 months ago. So there is money there, but it's more difficult to get the approval, as metal said, for the reason that banks want to be more sure they are going to get the money back.twinkletoes said:So why arent the banks lending then?
A lot of SME's (the real wealth creators) all over the country would dispute what you are saying.
We have had project Merlin and the national loan guarentee scheme but still the banks arent interested. The latest effort is the funding for lending scheme and it could go on ad infinitum.
metalblue said:twinkletoes said:SWP's back said:They are but with more stringent credit tests, for example I was still able to take out a very large business loan last year to add to the one I got 18 months ago. So there is money there, but it's more difficult to get the approval, as metal said, for the reason that banks want to be more sure they are going to get the money back.
A lot of SME's (the real wealth creators) all over the country would dispute what you are saying.
We have had project Merlin and the national loan guarentee scheme but still the banks arent interested. The latest effort is the funding for lending scheme and it could go on ad infinitum.
The funding for lending scheme (~£80bn) has, I understand*, been a huge success in the money is being loaned out exactly as planned.
*I neither work for a UK bank nor work on the retail side so can only go on what I have read/heard.