Bank Of England Fears Over Soaring Debt

[Realistbear]

http://www.thisismoney.co.uk/news/article...._page_id=2&ct=5

SOBERING evidence of Britain's huge credit binge will emerge this week as banking figures show lending still rising at a breakneck pace. At the same time, results from Britain's banks due over the coming month will show a huge rise in debt write-offs.

Figures from the Bank of England due on Tuesday will show households continuing to boost their borrowing by just under 10% a year

- at least three times the rate of economic growth.

'I think it is staggering,' said Walker. 'It's difficult to square with the evidence of labour market weakness.'

What can stop the credit binge? Higher IR?

[gasket37]

What can stop the credit binge? Higher IR?

yes, please!

or alternatively reintroduce what used to be called "the corset" - basically the bank of england require banks to deposit funds with them rather than dish them out to idiots to buy plasma TV's and 4x4's with

Edited January 29, 2006 by gasket37

[OnlyMe]

The BOE are nothing more than Gordon's little money printing machine, you name it the money was there no matter how hair-brained the public sector positions or how ludicrously desperate were the lenders to keep their profits rolling in, regardless of what it did to peoples' and more importantly businesses' finances and costs.

Successive YOY productivity falls, malinvestment in anything to do with the housing/property and real investment in the future starved of funds.

There were many ways to prevent all this, the BOE chose to use none of them simply reciting their main inflation remit which in itself is based on a lie - the CPI.