Saturday, Dec 27, 2008
Here's a wild idea - attract savings deposits to fund lending instead of bailing borrowers
Independent: British banks may face second credit crunch in the New Year
The Governor of the Bank of England has said getting banks lending is the most important task for combating the recession and has not ruled out full nationalisation of the sector.
Posted by paul @ 09:50 AM (653 views) Add Comment
3 Comments
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1. drewster said...
Debt-equity swaps pose a strange problem. If banks end up owning large companies, and government ends up owning the banks, then collectively we all own a bunch of failed companies (and repossessed properties). That can't look too good on the government balance sheets!
2. denzil said...
Another idea to throw into the pot in addition to attracting savers. Instead of throwing billions of tax-payers hard earned cash at banks to allow them to shore up their accounts and then simply sit on it, what should happen is that any taxpayers money should be used to fund development and regeneration projects that we all, taxpayers and non-taxpayers can benefit. It will make society a better place and also pump money straight back into the economy.
Look at what Labour did instead, they allowed the incompetence of the banks to bailed out with taxpayers money. It really is ludicrous.
3. beartil2010 said...
I sound like a Mish pimp here but... that's also what Mish has been putting forward in the US. Any spending of funds needs to go into productive enterprise which will create THINGS and employ PEOPLE - infrastructure spending ends up with something useful. Bailing out unproductive banks is no help to anyone.