Our Gord wants to pour even more of our money into the Banks- new plan to boost banks' lending.
After pouring £37 Billion into the ailing institutions a few months ago he wants to “do it again” because it didn’t work the first time.
Another brainwave is the insurance scheme where WE will underwrite the risks that the banks take if they ever decide to lend anyone money again.
In theory this is designed to help small businesses that need funds and want to borrow for re-capilisation or machinery for expansion.
Unfortunately the £37 Billion poured into the Banks was supposed to encourage them to lend, but it hasn’t. So why should this new “scheme”?
“Prime Minister Gordon Brown condemned the banks that had made losses from "irresponsible" lending.” But that isn’t going to stop him.
Gord has also given the Bank of England new powers. The ability to buy up to £50bn of high quality assets directly from companies.
“In the past, it has only bought such assets from banks or financial institutions. A new subsidiary company will be set up to buy the assets, but the Bank's executive will decide what sort of assets it will buy and from which companies.
But the list of assets includes corporate bonds, so some companies will now be able to borrow money directly from the Bank of England.
This new framework may also be used by the Bank of England's Monetary Policy Committee (MPC), which sets interest rates, to buy assets to help it meet the inflation target.
This is a practice known as quantitative easing.” And is also known as “adjusting the figures”.
The Details of the business loan schemes is here.
Has it worked so far? No. Will it work? Doubtful.
Gord it seems has fixated on the banks, he seems to think that they are the be all and end all of the cure, maybe he should stand back and take another look, and listen to people who didn’t get us into this mess.
Angus
After pouring £37 Billion into the ailing institutions a few months ago he wants to “do it again” because it didn’t work the first time.
Another brainwave is the insurance scheme where WE will underwrite the risks that the banks take if they ever decide to lend anyone money again.
In theory this is designed to help small businesses that need funds and want to borrow for re-capilisation or machinery for expansion.
Unfortunately the £37 Billion poured into the Banks was supposed to encourage them to lend, but it hasn’t. So why should this new “scheme”?
“Prime Minister Gordon Brown condemned the banks that had made losses from "irresponsible" lending.” But that isn’t going to stop him.
Gord has also given the Bank of England new powers. The ability to buy up to £50bn of high quality assets directly from companies.
“In the past, it has only bought such assets from banks or financial institutions. A new subsidiary company will be set up to buy the assets, but the Bank's executive will decide what sort of assets it will buy and from which companies.
But the list of assets includes corporate bonds, so some companies will now be able to borrow money directly from the Bank of England.
This new framework may also be used by the Bank of England's Monetary Policy Committee (MPC), which sets interest rates, to buy assets to help it meet the inflation target.
This is a practice known as quantitative easing.” And is also known as “adjusting the figures”.
The Details of the business loan schemes is here.
Has it worked so far? No. Will it work? Doubtful.
Gord it seems has fixated on the banks, he seems to think that they are the be all and end all of the cure, maybe he should stand back and take another look, and listen to people who didn’t get us into this mess.
Angus
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