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Tired of Waiting

Osborne: Banks Should Lend More "to Small And Medium Size Businesses"

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In an interview to the Today Programme, this morning.

Every time Osborne said banks should lend more he specified "to small and medium businesses" (4 times). And not once he mentioned mortgages or FTBuyers. This is coherent with the recent comments by Cable, Clegg, Cameron and Shapps.

LINK: http://news.bbc.co.uk/today/hi/default.stm

1hr 31min - introduction by Nick Robinson

1hr 33min - Osborne interview starts (mainly re. banks bonuses.)

1hr 35min - "get all the banks lending more, particularly lending more to small businesses".

Later:

"lending to small and medium size businesses";

"commitment to small and medium size businesses";

"small and medium size businesses"

4 times in total, and not a single word re. mortgages or FTBs. :) I think this is good news. Hopefully.

Edited by Tired of Waiting

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In an interview to the BBC Radio 4 Today Programme, this morning.

Every time Osborne said banks should lend more he specified "to small and medium businesses" (4 times). And not once he mentioned mortgages or FTBuyers. This is coherent with the recent comments by Cable, Clegg, Cameron and Shapps.

LINK: http://news.bbc.co.uk/today/hi/default.stm

1hr 31min - introduction by Nick Robinson

1hr 33min - Osborne interview starts (mainly re. banks bonuses.)

1hr 35min - "get all the banks lending more, particularly lending more to small businesses".

Later:

"lending to small and medium size businesses";

"commitment to small and medium size businesses";

"small and medium size businesses"

4 times in total, and not a single word re. mortgages or FTBs. :) I think this is good news. Hopefully.

I was going to mention the same thing actually. I had noticed it before today from those you mentioned and I too really noticed it this morning. Maybe we over analyse stuff but hopefully noticing a trend.

S

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I was going to mention the same thing actually. I had noticed it before today from those you mentioned and I too really noticed it this morning. Maybe we over analyse stuff but hopefully noticing a trend.

S

It is a possibility - "wishful thinking". particularly this one, from Osborne. But the other 4 chaps were very clear indeed, and directly to all of our favourite points: houses became unaffordable, mainly because credit was too loose and planning too restrict, etc. Now let's see what they will actually DO about it.

It appears that they would prefer a very slow correction, under the radar of the public opinion, mostly hidden by inflation.

That would be very frustrating, for so many of us, who are already very "Tired of Waiting" for this fecking correction!!! :(

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Personally i think Grant Shapps is/has been a little off message and they are trying to bring him back in.

Yes, I had had the same impression before, re. Shapps being off-message. But yesterday on radio 4 he was very clear that prices went up too much. He mentioned "doubled or trebled", from 3x to 8x average income, to much lending, etc. If he was off-message before, no longer!

Osborne has actually gone up in my estimation since the election and I do think he is trying to do what is right.

It's a devilishly difficult task they've been handed though.

+ 1 !

Actually I think it is between "devilishly difficult" and impossible. Only time will tell. And I mean regarding the whole economic situation, and not only house prices. They can't cut more without pushing the country into recession. And they can't cut less without spooking their lenders ("markets" :rolleyes: ). let's just hope that this amount of cuts will avoid both dangers. Only time will tell.

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Makes sense to me ,as the only way out of this is to cut spending and create growth and I'm pretty sure they have worked out ,the more banks lend for over priced house`s the less there is going to be available for the business side of it

,I also think the sentiment of FTB`ers, is turning rapidly and they are the linchpin in the ponzi scheme

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Makes sense to me ,as the only way out of this is to cut spending and create growth and I'm pretty sure they have worked out ,the more banks lend for over priced house`s the less there is going to be available for the business side of it

,I also think the sentiment of FTB`ers, is turning rapidly and they are the linchpin in the ponzi scheme

Good point. Pyramids schemes require a constant supply of fresh blood. In this case it was FTBers. That is why, both in America ("sub-prime") and here (liar loans, etc.) they had to scrape the bottom of the barrel to keep it going.

No longer. :)

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Good point. Pyramids schemes require a constant supply of fresh blood. In this case it was FTBers. That is why, both in America ("sub-prime") and here (liar loans, etc.) they had to scrape the bottom of the barrel to keep it going.

No longer. :)

Have a look at the EA comments section of the latest RICS report (And many others recently) for proof of this.

All of a sudden they are desperate for the poor wee FTB's to be helped out with bigger mortgages, lower deposits and shared equity to help them with their 'dream'.

Funny that - can't remember any of these saying the same thing in 2005 or 2007. Confusing...:rolleyes:

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jobs is what we need. If lending to small business brings jobs then they should.

By the same token building 200,000 council houses would get the building industry going.

New homes gives a boost to the economy as people buy stuff for them.

Cheaper rents mean more spare cash to fritter.

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Good point. Pyramids schemes require a constant supply of fresh blood. In this case it was FTBers. That is why, both in America ("sub-prime") and here (liar loans, etc.) they had to scrape the bottom of the barrel to keep it going.

No longer. :)

Tired of Waiting....how long are you prepared to wait before you buy?....if it were me as a FTB no way would I be buying anything at the moment.....everything is so uncertain, the cuts, higher taxes and the VAT rises have not kicked in yet...at least 12 months of slow downwards pressure on property, I would review again then.. ;)

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In an interview to the Today Programme, this morning.

Every time Osborne said banks should lend more he specified "to small and medium businesses" (4 times). And not once he mentioned mortgages or FTBuyers. This is coherent with the recent comments by Cable, Clegg, Cameron and Shapps.

The minute the banks become willing to lend to the owners of the small business that employs my wife I predict they will begin a splurge of house-related spending.

Of course I could be wrong. Perhaps their private spending is completely unrelated to the borrowing of the business - and its just coincidence that all the house spending stopped every time the bank got iffy about increasing their business loans in the past.

Osborne can 'specify' all he likes, some of this lending will end up in houses. Its simply a question of how big a proportion.

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Tired of Waiting....how long are you prepared to wait before you buy?....if it were me as a FTB no way would I be buying anything at the moment.....everything is so uncertain, the cuts, higher taxes and the VAT rises have not kicked in yet...at least 12 months of slow downwards pressure on property, I would review again then.. ;)

I agree with your timing. At least 1, probably 2, perhaps even 3 years.

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Well - let's hope he doesn't include Buy-to-Let in his definition of 'small and medium sized business'. ;)

True.

Update: Osborne just said in Parliament that "Britain had the biggest housing boom". I've found a video of it on YouTube, and I've started a new thread with it.

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(...) Maybe we over analyse stuff (...)

Apparently not: :)

A few hours after his interview to the Today Programme:

Video: Ed Balls v George Osborne - 1st Treasury Questions

Osborne: "had the biggest housing bubble boom"

Main "quartet" completed: In a couple of weeks, all 4 main members of government (Cameron, Osborne, Clegg and Cable) have mentioned the hosuing bubble. This canNOT be just a coincidence. :)

Edit: Correction: Osborne actually said housing boom, not bubble. Sorry.

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Personally i think Grant Shapps is/has been a little off message and they are trying to bring him back in.

Osborne has actually gone up in my estimation since the election and I do think he is trying to do what is right.

It's a devilishly difficult task they've been handed though.

Shapps needs to talk positive about housing, the health minster needs to talk positive about the health service etc.

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In an interview to the Today Programme, this morning.

Every time Osborne said banks should lend more he specified "to small and medium businesses" (4 times). And not once he mentioned mortgages or FTBuyers. This is coherent with the recent comments by Cable, Clegg, Cameron and Shapps.

LINK: http://news.bbc.co.uk/today/hi/default.stm

1hr 31min - introduction by Nick Robinson

1hr 33min - Osborne interview starts (mainly re. banks bonuses.)

1hr 35min - "get all the banks lending more, particularly lending more to small businesses".

Later:

"lending to small and medium size businesses";

"commitment to small and medium size businesses";

"small and medium size businesses"

4 times in total, and not a single word re. mortgages or FTBs. :) I think this is good news. Hopefully.

The change of emphasis was very noticeable after the last election. With Brown and Darling it was always "business and mortgage lending".

Right from the start Cameron and Osborne mentioned increasing lending to businesses, but no mention is ever made of increasing mortgage lending. Nothing, nowt, nada..... It's conspicuous by it's absence. I think they are well aware the housing market is screwed, whereas Brown would never accept it.

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http://www.ft.com/cms/s/0/ea05696e-3300-11e0-9a61-00144feabdc0.html

George Osborne on Tuesday announced an £800m increase to the government’s bank levy, but said he remained “confident” the move would not prevent the signing of a comprehensive deal with the banks covering lending and bonuses.

The chancellor introduced the plan to raise a levy on the balance sheets of all large banks operating in the UK in his first Budget in 2010. The tax was expected to raise £2.5bn a year when it was fully operational but initially Mr Osborne decided it should be introduced at a starter rate of £1.7bn to allow weakened banks to build up their capital positions.

However, before markets opened on Tuesday, Mr Osborne said he had concluded that the banks were strong enough to pay something close to the full rate this year, adding that the £800m rise would help deliver a “predictable and stable” tax system.

Britain’s banks responded with resigned irritation to news of the surprise increase in the levy. The move, widely seen as motivated by the chancellor’s desire for fresh ammunition ahead of his first Commons exchange with shadow chancellor Ed Balls, may also have been triggered by recent developments at the banks, in particular the move to pay new Barclays chief executive Bob Diamond a £9m bonus for last year.

“There is clearly a desire to be seen to be bashing the bankers again for political reasons,” said Simon Maughan, analyst at MF Global.

Bankers said there was a risk that it could push peace talks with the government – under the auspices of the so-called Project Merlin – off course. The banks want a deal that will leave banker bashing behind. The government wants pledges from the banks to pay their staff less generously and to lend more to small businesses.

But one senior banker said the increased levy was illogical. “This is a tax on the balance sheet. And yet they want us to increase the balance sheet by lending more,” the banker said. “It is totally inconsistent.”

Mr Osborne said he believed that in spite of the higher bank levy this year, a deal with the City could be agreed soon to increase lending to small companies. “I’m still confident we can secure a deal with the banks,” he said.

Although he said “talks haven’t concluded”, he expected Project Merlin to produce “a meaningful and significant” increase in lending to small businesses.

UK banks will provide more than £1bn in equity funding to small companies to help boost regional growth, as part of an imminent deal intended to end months of verbal sparring between Westminster and the City.

But many have questioned whether such lending commitments are meaningful, given the unpredictability of demand and the pressure on banks to rein in potentially irresponsible lending.

Negotiations to finalise the agreement continued into Monday night and several senior bankers said no equity commitment had yet been agreed. However, Nick Clegg, deputy prime minister, is confident banks will provide £1.3bn over three years to invest in enterprises in parts of Britain most affected by the public spending cuts.

Mr Osborne will also require banks to disclose the salaries of more highly paid “decision-making” bank executives, although remuneration of the highest earners – such as star traders – may be kept secret.

Meanwhile, the banks are set to promise restraint on bonus payments, although that section of the agreement is seen by bankers and some coalition members as especially weak.

Mr Clegg, the deputy prime minister, knows that the deal will attract heavy criticism, with Labour likely to claim that neither the promise of smaller bonuses nor higher lending amount to significant concessions from the banks.

The Lib Dem leader and Vince Cable, the business secretary, have long been pushing banks to support lending to small and medium-sized enterprises in poorer regions, and claim the agreement will mark a significant boost to the real economy. Last week Mr Clegg promised to “rebalance” the economy away from overheated south-east England. “We are determined to set our economy on a new course – to fuel growth in a new, more balanced way,” he said.

The British Bankers' Association attacked the government’s plan to bring forward the full tax levy.

“UK banks fully understand the government’s need to raise revenue and the role they must play in the economic recovery. The levy is nothing new and the only difference is that the government is bringing it in now, rather than phasing in the full amount.

“However the levy itself is complex and will hit our most global banks hardest as they operate and pay tax across national boundaries. Changing the tax goalposts also makes things harder – all organisations want a predictable tax regime so they can plan their businesses accordingly and constant chopping and changing risks making the UK a less attractive place for businesses to operate.”

Not one mention of mortgages in this article.

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http://www.ft.com/cms/s/0/ea05696e-3300-11e0-9a61-00144feabdc0.html

Not one mention of mortgages in this article.

Nice work Fellow. Thanks.

I think the coalition gets it, and will not try to keep this bubble inflated - at least not at this high level. Perhaps just cushion the fall, partially.

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Banks do not need to lend to small and medium sized businesses.

They need to stop lending to/bailing out large businesses.

Heard recently tales of the extent to which the last government were bailing out big companies that would make big job loss headlines. This was all done through RBS, in most cases,

I strongly suspected this was the case but the roll call of those companies that have benefitted is staggeringly extensive.

I expect the new administration must be aware of what went on but, I'm not sure how you'd begin to unpick it.

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Banks do not need to lend to small and medium sized businesses.

They need to stop lending to/bailing out large businesses.

Heard recently tales of the extent to which the last government were bailing out big companies that would make big job loss headlines. This was all done through RBS, in most cases,

I strongly suspected this was the case but the roll call of those companies that have benefitted is staggeringly extensive.

I expect the new administration must be aware of what went on but, I'm not sure how you'd begin to unpick it.

Interesting. And quite possible, probable even, as one company firing 1,000 or even just 100 can make the news, whilst 10,000 small business firing 1 employee each is just "statistics" = abstract = "theory".

We have an awful media/journalism.

I understand the commercial media going for populists angles, but if the BBC doesn't do a proper job, then what is the fecking point of the BBC??

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  • 312 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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