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Vince Cable......what Planet Is He On?

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Once the rest of the World susses that this Rag-tag goverment are just bulsh*ters with no clue what to do they be finished by Xmas!

Mike

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http://www.telegraph.co.uk/finance/7909709/Banks-told-lend-more-or-lose-bonuses.html

Vince

It was TOO much bad lending that got us here, they got BLACK HOLE balance sheets...they can't lend so, what are you going to do....?

Mike

...if a Bank has been saved with taxpayers money there should be no bonuses....how do you pay a bonus from a bust / loss making organisation which is only surviving because of the taxpayers ...?.....thought it was only Gordo who thought money was laid with eggs in the farm yards of the UK.... as for lending ...he should be lecturing them on credit risk ..not shovelling the notes out the window to every slick tongued maverick....at least Sugar was on the right ball for this one.... :rolleyes:

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Vince

It was TOO much bad lending that got us here, they got BLACK HOLE balance sheets...they can't lend so, what are you going to do....?

Mike

It was the mis-allocation of lending that was the problem as far as I can tell.

People were borrowing to speculate, rather than invest in profitable business ventures.

You might argue that there is nothing worth investing in at the moment.. which means the banks still won't lend and they also won't get any bonuses.

If they do manage to find good/productive places to lend they will be rewarded (should be no problem for them since they claim their high salaries are required because they are the best of the best at resource allocation ;)).

Doesn't sound that bad an idea to me :unsure:

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found this the other day, didn't bother posting at the time, but it is quite revealing.

Makes a mockery of this notion that "we've got to get the banks lending again".

We were on a binge of credit, now we're on a normal diet, and everyone thinks we're starving.

Why the Banks aren't lending? Wells Fargo CEO

Edited by worst time buyer

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You might argue that there is nothing worth investing in at the moment.. which means the banks still won't lend and they also won't get any bonuses.

They're still lending, you can still get mortgages, loans and credit cards. By and large, lending to an individual = betting on the business that employs him; is there really a different level of risk in lending to the business instead -- particularly when you consider that the individual usually borrows to speculate or consume (largely imports), while the business borrows to invest?

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It is clear that the Business Secretary has run out of patience with banks. "I don't think the banks get it," he said yesterday. "We are very worried about their behaviour. They are not acting in the national interest.

Fool. Banks have never been there to act in the national interest. When regulation was removed they acted in their own interests. Now they can no longer do that and have to return to some sort of real world standard they shouldn't be bullied into lending with altruistic motives. If a lender thinks a borrowing proposal is worthy they will lend.

I know of one company which suffered in the 1970s along with its share-price when the board was filled suits who shifted to a philosophy it was the company's duty to "serve society". In-house newsletters with exciting articles focusing on genuine science, advancement, expanding corporate earnings and assets, to articles titled "What others think" over independent judgement as a basis for action. Research for Government: Nonprofit research done at the expense of shareholders. Anti-capitalistic economic philosophies and actions which began to sacrifice the values of a once great company. Executives are hired by shareholders to enhance the long-range financial value of their business enterprise in order to increase profits and stock values.

It is about lending to good risks in order to get a return. Not high or changing risks where the lender is unlikely to see a return or see the loan turn bad. Vince's "make them lend money in the national interest" is as warped as Brown believing markets are there to "serve society". Dismissing the capitalistic concept of value production by competitive individuals.

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2 choices present themselves:

1. Get people going into more debt by forcing banks to lend and borrowers to deepen their debt, or:
2. Allow the debt to shrink through a tough period of deflation.

Vince should know better as it was lending that created the trouble we are now in.

Deflate Vince--deflate.

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I wonder if he is interested which businesses the banks should be lending to. He might have ideas of emulating Japan's Ministry of Trade and Industry and have the government pick and choose what industries to support.

It seems a small step from the banks must lend to the banks must lend to these guys.

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found this the other day, didn't bother posting at the time, but it is quite revealing.

Why the Banks aren't lending? Wells Fargo CEO

That banker's 3 minute speech was very good. They can't find many good standing companies who actually want to borrow. How they are sitting on loads of liquidity ready to lend to good credit risks who want to invest.

Then he emphasises how they can't go back to lending to poor credit risks because that is what led to the crisis. They want more good loans on the books but are finding that very difficult to achieve. More of this attitude please. Back to the old ways. Not lending to businesses which are set up to service irrational levels of credit expansion nor consumers with poor credit histories.

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Guest BetterOffOnBenefits

Once the rest of the World susses that this Rag-tag goverment are just bulsh*ters with no clue what to do they be finished by Xmas!

Mike

and then good ole Labour will return to finish the job good and proper

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jeez. banks like lending, that's how they make their money... why does he think they holding back?

if you force the banks to lend then, morally, you absolutely have to bail them out if/when they fail...

Edited by the flying pig

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jeez. banks like lending, that's how they make their money... why does he think they holding back?

if you force the banks to lend then, morally, you absolutely have to bail them out if/when they fail...

We have bailed them out, and businesses are suffering the credit crunch too.

it's all about keeping jobs.

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Genius idea, clearly this isn't risking malinvestment.

Banks should be lending on a commercial basis rather than in the national interest.

I agree with you......if the business is viable and the owners are prepared to put some of their own money down and risk their own assets such as their own home if the business fails they are showing a commitment to succeed....the business is the people behind it, if they are not prepared to take a risk....why should banks. ;)

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As always:

Your letters to the Daily Telegraph, Sunday Telegraph and Telegraph.co.uk. Letters should be sent to dtletters@telegraph.co.uk (Daily Telegraph) or stletters@telegraph.co.uk (Sunday Telegraph). Please include name, address, and work and home telephone numbers.

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http://www.telegraph.co.uk/finance/7909709/Banks-told-lend-more-or-lose-bonuses.html

Vince

It was TOO much bad lending that got us here, they got BLACK HOLE balance sheets...they can't lend so, what are you going to do....?

Mike

good. hope all the available money gets lent to good businesses which can make profits and also employ people rather than to speculate in housing.

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Got to make the Banks lend to big/small businesses or unemployment will rocket.

entrprenuer: hello bank, Ive got a great idea, im going to create a State of the Art widget factory...it only needs me and one other to run, but I need this machinery. we will be competitive with current players from the far east. I need £1m in loans to buy a machine and starting stock.

bank: now what security do you have?

e: my house, but I am receiving help with my mortgage since my firm went bust.

b: have you tried dragons den?..NEXT!

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I've never quite understood how Cable gets credit for being some kind of economics expert just because he repeatedly said we were set for a recession (a stopped clock is right twice a day).

To me he just seems like a bumbling left wing fool .

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If they want to encourage the banks to lend, RAISE THE BofE INTEREST RATE!!!

Then it pays more for the banks when they lend. SIMPLES!

Yet another example of how the low IRs and trying to save these morons who signed up to debt they have no hope of paying back is destroying jobs. Duh!

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If they want to encourage the banks to lend, RAISE THE BofE INTEREST RATE!!!

Then it pays more for the banks when they lend. SIMPLES!

Yet another example of how the low IRs and trying to save these morons who signed up to debt they have no hope of paying back is destroying jobs. Duh!

German bonds at 2.75% i saw on doomberg this morning.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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