shortyg Posted January 19, 2009 Report Share Posted January 19, 2009 The UK Government today announced a new proposal to INSURE banks against losses for loans, a scheme in which they will be funding 20 Billion UK pound of the tax payers money. (Giving them billions in the hope they would cut interest rates to match the bank of England base rate did not help as only a small percentage has been passed on to those that needed it). The governments reasoning behind this is that if the banks can loan small businesses money then that will keep people employed and able to spend money. In my opinion (and I am not an expert which is why I want to know what you people think), it was the banks over lending that caused much of the economic crisis we are in now. Making it easier for banks to loan money to people who cant afford to pay it back will not help the situation it will just increase the circle of debt. People have become wise to the fact they cant keep borrowing forever and so spending has stopped even people not in debt are being more cautious with cash. Would it not be wiser to help the public who are in financial trouble by offering them loans from the government at low interest rates giving the general public the freedom to start spending again without the worry of never ending debt being over their heads. Quote Link to comment Share on other sites More sharing options...
Stu_thailand Posted January 19, 2009 Report Share Posted January 19, 2009 The UK Government today announced a new proposal to INSURE banks against losses for loans, a scheme in which they will be funding 20 Billion UK pound of the tax payers money. (Giving them billions in the hope they would cut interest rates to match the bank of England base rate did not help as only a small percentage has been passed on to those that needed it).The governments reasoning behind this is that if the banks can loan small businesses money then that will keep people employed and able to spend money. In my opinion (and I am not an expert which is why I want to know what you people think), it was the banks over lending that caused much of the economic crisis we are in now. Making it easier for banks to loan money to people who cant afford to pay it back will not help the situation it will just increase the circle of debt. People have become wise to the fact they cant keep borrowing forever and so spending has stopped even people not in debt are being more cautious with cash. Would it not be wiser to help the public who are in financial trouble by offering them loans from the government at low interest rates giving the general public the freedom to start spending again without the worry of never ending debt being over their heads. The banks should only be given bailouts if they have a policy of tracking the BOE's base rate. If not, and they continue to look after their fat cat directors bonuses, screw em. Quote Link to comment Share on other sites More sharing options...
Tony_Sorco Posted January 20, 2009 Report Share Posted January 20, 2009 The UK Government today announced a new proposal to INSURE banks against losses for loans, a scheme in which they will be funding 20 Billion UK pound of the tax payers money. (Giving them billions in the hope they would cut interest rates to match the bank of England base rate did not help as only a small percentage has been passed on to those that needed it).The governments reasoning behind this is that if the banks can loan small businesses money then that will keep people employed and able to spend money. In my opinion (and I am not an expert which is why I want to know what you people think), it was the banks over lending that caused much of the economic crisis we are in now. Making it easier for banks to loan money to people who cant afford to pay it back will not help the situation it will just increase the circle of debt. People have become wise to the fact they cant keep borrowing forever and so spending has stopped even people not in debt are being more cautious with cash. Would it not be wiser to help the public who are in financial trouble by offering them loans from the government at low interest rates giving the general public the freedom to start spending again without the worry of never ending debt being over their heads. The banks should only be given bailouts if they have a policy of tracking the BOE's base rate. If not, and they continue to look after their fat cat directors bonuses, screw em. Interest so low on my savings and the pound back below 50 baht....I may have to go back to work Quote Link to comment Share on other sites More sharing options...
shortyg Posted January 20, 2009 Author Report Share Posted January 20, 2009 At the same time as the announcement for the 20 billion bail out it also seems that the government now own 70 % of The Royal bank of Scotland. I believe the Government wants to own higher percentages in all of the trading banks to control the economy from the inside. These announcements come to light at a time that it will all be overshadowed by the news of Obama's inauguration as president of the USA. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.