Sunday, Nov 08, 2009
Why zombie banks are bad
Spectator: Failing to address the banking crisis is hampering recovery
Good explanation of the bad effects of zombie banks. Over the last year by maintaining high mortgage charges over the base rate to cover defaults, the banks sucked out an additional 30 billion from the economy to cover their losses, aside from cutting credit availability generally. Plus charts depicting lending collapse.
Posted by stillthinking @ 07:51 PM (419 views) Add Comment
2 Comments
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1. Tpbeta said...
Points up a little discussed aspect of the lack of supply of housing. If people are on tracker mortgages from pre-2008, and they're non-portable, then they lose a great deal by moving house and starting a new mortgage witha much higher bank profit margin.
2. drewster said...
Nice observation, tpbeta. Thanks!