Thursday, Aug 13, 2009
UK debt continues to rise
Credit Action: Debt Statistics
Talk was always that UK consumer debt was going to bring down the housing market. Yet debt has continued through £1T to £1.3T to now stand just shy of £1.5trillion. To me this recession is mostly a result of the American nation and banking system deleveraging. UK households are not deleveraging despite lower house values, rising unemployment and record public debt. Britian has not solved a fundametal problem and is now in a worse position to do so. The answer - to get banks lending again. We are going to end up with a rich banking fraternity and a broke Britain. It now appears not such a good idea letting the BoE manage the base rates or that the FSA is funded by the financial industry.
Posted by pj @ 09:50 AM (330 views) Add Comment
1 Comment
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1. Notbuyingoneyet said...
I don't understand how getting the banks to lend more in an environment of rising unemployment and record public debt makes things better. If we are up to our eye balls in debt, how does borrowing more help? If I am in debt and add more, I would have to pay more interest to the bank and it would take longer to repay the loan. Plus I would have less to spend. Please can someone explain.