Jump to content
House Price Crash Forum
Sign in to follow this  
BalancedBear

Talk About Forcing Banks To Lend

Recommended Posts

There always seems to be lots of talk about forcing banks to lend more money. However, do any of the people who say this actually know how much demand there is from people and companies to borrow more? I would guess there probably is not as much demand as is made out from sensible people and companies. I know I'm not looking for and credit, and nor is my business. In fact I will be paying down mortgage debt with any spare money, as saving rates have dropped far more than mortgage rates in general (except for thos on trackers).

So there just may nt be any demand for debt. Perhaps the government will introduce a law forcing everyone to borrow a portion of their income? However this still will not force people to spend. The current system is unsustainable a sthere comes a time when people just do not want more debt. The only people who do, would be those who cannot pay it back.

Share this post


Link to post
Share on other sites
There always seems to be lots of talk about forcing banks to lend more money. However, do any of the people who say this actually know how much demand there is from people and companies to borrow more? I would guess there probably is not as much demand as is made out from sensible people and companies. I know I'm not looking for and credit, and nor is my business. In fact I will be paying down mortgage debt with any spare money, as saving rates have dropped far more than mortgage rates in general (except for thos on trackers).

So there just may nt be any demand for debt. Perhaps the government will introduce a law forcing everyone to borrow a portion of their income? However this still will not force people to spend. The current system is unsustainable a sthere comes a time when people just do not want more debt. The only people who do, would be those who cannot pay it back.

The banks will lend to anyone who represents a good risk. There just aren't that many, because they sensibly don't want to take on more debt in a Depression.

Share this post


Link to post
Share on other sites
The banks will lend to anyone who represents a good risk. There just aren't that many, because they sensibly don't want to take on more debt in a Depression.

That is what I would think too. So why do we have politicians and others people harping on about it all the time?!

Share this post


Link to post
Share on other sites
That is what I would think too. So why do we have politicians and others people harping on about it all the time?!

Politicians need to be seen to be doing something. That way they can blame other people for the ineffectiveness. It's all spin and no substance.

Share this post


Link to post
Share on other sites
That is what I would think too. So why do we have politicians and others people harping on about it all the time?!
Politicians need to be seen to be doing something. That way they can blame other people for the ineffectiveness. It's all spin and no substance.

Exactly the same in the last recession.

Fills up a zillion column-inches in the papers and hours and hours of news channels' air-time.

Share this post


Link to post
Share on other sites

This time round, it will really be a problem, as it seems teh politicians see more borroed money being spent as the only way to revive our hollowed out economy.

So, what is going drive any recovery?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   288 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.