Debt 'out of control' and warns bank loans may have to be cancelled

[shlomo]

https://www.thisismoney.co.uk/money/markets/article-9070497/Debt-control-British-firms-says-Xavier-Rolet.html

A top business chief last night sounded the alarm over Britain's mounting corporate debt pile – just as the Government extends emergency bank loans for struggling firms. 

Xavier Rolet, former boss of the London Stock Exchange, warned that companies in the UK and other nations are now 'so awash with debt that central banks simply can't control it'. 

The debt binge by firms now poses a major risk to long-term economic recovery, Rolet said. 

The highly-respected City grandee warned the problem was so severe that Ministers would next year come under pressure to consider debt cancellation programmes. 

He predicted 'big social debate about the cancellation of debt', comparing it with discussions around debt 'forgiveness' in the Roman Empire in the 1st Century BC

[Si1]

Fine. Cancel out the debt. And in turn cancel all the boomers pensions and savings held in bonds and gilts of one type or another.

[PeanutButter]

Ah, the real cancel culture

[msi]

Ah the same Tories that wouldn't cancel 3rd word debt, student debt, benefit debt but now want to cancel debt of their chums?

[A.steve]

 

 

Xavier Rolet, former boss of the London Stock Exchange, warned that companies in the UK and other nations are now 'so awash with debt that central banks simply can't control it'.

 

I wonder... Does this explain why Lehman Brothers was so successful while he was co-head of global equity trading until 2008?

[Si1]

 

I wonder... Does this explain why Lehman Brothers was so successful while he was co-head of global equity trading until 2008?

There's some dirt here in general, I don't know what it is. Apparently Mark Carney made an extraordinary intervention leading to him getting kicked out of his job as chairman of FTSE. Don't know why: https://www.theguardian.com/business/2017/nov/30/lse-chair-faces-new-call-to-quit-as-boardroom-row-refuses-to-fade

 

[Roman Roady]

Someones debt is someone else's asset, as soon as you start down this road the whole debt fueled system grinds to a halt.

[Staffsknot]

If this were just applied to corporates expect overseas companies to kick off and state aid lawsuits.

If non-UK companies get it well watch the person getting a tax rise kick off.

It's a complete non-starter if you apply to everyone even as it gives competetive advantage to student A finishing in the debt forgiveness vs student B who starts that year. It also leaves viable companies who didn't splurge screwed by those who did. We'd be untrustworthy in any loan propositions too as the gov of the day can just call a debt jubilee every x years.

Fractional lending implodes as banks cease to earn interest on loan but instead get the principle back which they earn bob all on from BoE.

[Huggy]

I think my savings with these institutions should also be put to zero. To help house prices remain 'buoyant', and 'improving'.

[Saving For a Space Ship]

VI's saying 'Cancel the bank loans' rather than raise the interest rates, which bankrupts the debtors & they get their factories & houses repo'd by the banks ?

Perhaps the banks do not want the properties back ...

Edited December 21, 2020 by Saving For a Space Ship

[msi]

 

VI's saying 'Cancel the bank loans' rather than raise the interest rates, which bankrupts the debtors & they get their factories & houses repo'd by the banks ?

Perhaps the banks do not want the properties back ...

The Banks know the true value of the property and won't touch it