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Bail outs

techguy
Grafter
Posts: 2,540
Registered: 12-09-2008

Bail outs

I was thinking, the government has gone about this recovery scheme in entirely the wrong way.
What they should have done is cleared the loans owed by people that have defaulted (or give the people the money to pay off their loans) with a block on those people applying for loans for a couple of years perhaps.
That way, they would be relived of some commitments and be able to use more of their salaries as disposable income.
From a business point of view yes there needs to be stimulation of lending.
2 REPLIES
Community Veteran
Posts: 1,100
Registered: 05-04-2007

Re: Bail outs

I have never quite understood how lending can have caused the problem whilst lending is the solution. Personally I think that the government is trying to nationalise industry. I wonder how long it will be before the Competition Commission as to investigate the government as it will have a major stake in too many similar companies.
techguy
Grafter
Posts: 2,540
Registered: 12-09-2008

Re: Bail outs

Excessive lending is what got us into this mess.
I think the government doesn't really know what else to do and remember there is an election coming up so that is why its asked BoE to create more money.
As for nationalising companies I am now of the opinion that the arms of banks that look after our money should be nationalised so you can weed out the likes of Adam Applegarth and Fred Goodwin and the ferrari/bentley driving dipsticks whose only concern is their next million and that new car/house they have their eye on.
As while an average salary is pocket change to them, the majority its about eating and paying your bills.

Thing is though, the banks are also trying to make up for lost profit by jacking up interest on things such as exsting credit card agreements.