Tuesday, Jun 02, 2009

Same data, different emphasis.

FT: UK lending remains at record lows

Lending to companies and households fell in April by the most since records began more than a decade ago, in a sign that the UK economy remains in the grips of the credit crunch.
“With lending growth to the non-financial sector still sluggish, we still find it hard to see how a strong and sustained recovery in the wider economy is possible,” said Vicky Redwood of Capital Economics.

Posted by devo @ 01:05 PM (706 views) Add Comment

6 Comments

1. 51ck-6-51x said...

Makes more sense to me.

Tuesday, June 2, 2009 02:47PM Report Comment
 

2. inbreda said...

seems like an admission to me that the economy is based on nothing more than credit

Tuesday, June 2, 2009 03:32PM Report Comment
 

3. andrew said...

"tight credit conditions facing businesses and individuals"

So to help the economy, we all have to borrow money to buy things that we can't afford because our regular income is too low, which will in turn reduce our regular income, because we have to pay the loan back with interest, makes sense to me.

Tuesday, June 2, 2009 03:33PM Report Comment
 

4. 51ck-6-51x said...

andrew - LOL... yeah. But seriously, the answer is that the process of deleveraging needs to run it's course, after which debt would become more affordable and risk appetite will increase - it's the business cycle, innit!

Tuesday, June 2, 2009 03:55PM Report Comment
 

5. devo said...

@4. 51ck-6-51x

Here we go again...

Risk appetite by most lenders and borrowers has decreased dramatically and probably for good. This is the start of a new era don'cha know?

And don't get me started on the quadrillion (notional) dollars of develeraging that has to take place.

Tuesday, June 2, 2009 04:13PM Report Comment
 

6. 51ck-6-51x said...

devo LOL what a joke. Like people will never be more comfortable taking risks with capital than they should be again... especially other people's, get real.

Wednesday, June 3, 2009 09:22AM Report Comment
 

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