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The Masked Tulip

Banks Must Not Penalise Customers For Bad-debt Write Offs

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“Banks need to remember that sensible customers have not contributed to their bad debts and these customers should not be made to pay for the banks’ own mistakes.

“There is now a danger that banks will allow the pendulum of risk to swing from excessive risk-taking to extreme risk-aversion. But what goes around comes around, and penalising prudent customers in the short term will damage goodwill in the long term.”

At last, someone indirectly pointng out the lower savings IRs that banks now offer methinks.

http://www.easier.com/view/Finance/Banking...cle-165878.html

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At last, someone indirectly pointng out the lower savings IRs that banks now offer methinks.

http://www.easier.com/view/Finance/Banking...cle-165878.html

It won't just damage goodwill... it will damage their business health. There'll be a big kick-back. As their charges get worse and worse, I can see people demanding to be paid in cash again.

Savers are going to redouble their efforts to find better returns for their money.

And why hasn't this been moved off-topic? WTF has it got to do with HPC? (nothing to do with you Tulip)

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It won't just damage goodwill... it will damage their business health. There'll be a big kick-back. As their charges get worse and worse, I can see people demanding to be paid in cash again.

Savers are going to redouble their efforts to find better returns for their money.

And why hasn't this been moved off-topic? WTF has it got to do with HPC? (nothing to do with you Tulip)

90% of threads would be moved to off topic, or metals, or investments and there wouldn't be a main discussion forum - it must be a complex quantum mathematic theorum that determines which thread goes where.

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.....'penalising' customers need not be intentional ...but when there is a credit crunch there will be less funding for say mortgages .....penalty ....no!...just the hard facts of life ....'who is to blame' doesn't really matter..... <_<

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.....'penalising' customers need not be intentional ...but when there is a credit crunch there will be less funding for say mortgages .....penalty ....no!...just the hard facts of life ....'who is to blame' doesn't really matter..... <_<

It seems to me the UK banks are now back to being cautious - but if conditions darken further as things unfold, will begin restrict credit even further, including for those with very good credit ratings.

The Fed immediately dropped the discount rate in 1929 from 6 percent to 5 percent. Within two weeks, the rate had been pushed down to 4.5 percent. By March 13 of 1930, it stood at 3.5 percent. In the weeks after the crash "the system expanded credit enormously." Nonetheless, after the crisis subsided, falling interest rates were not accompanied by a growth of money aggregates. A repeat of this would be an early confirmation of a coming deflationary collapse.

Credit Revulsion

The timidity of the banking system appears to have been general and widespread. Indeed, the 1939 survey found that over half the reason given for credit refusals by banks were "bank policy"; only a third were because of "the condition of the borrowing concern."

-Michael A. Bernstein

The Great Depression

Slow Death Of Collateral

With the value of real estate collateral falling, the true market value of construction and other real estate loans will fall. Bankers and other lenders, like their predecessors after 1929, will not wish to magically turn one dollar of cash into a loan worth just eighty cents, much less sixty cents. When the value of collateral falls, and the public's demand to hold cash rises, even easy money at the Fed may not stop deflation.

Source: The Great Reckoning (1992 - James Dale Davidson & William Rees-Mogg)

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90% of threads would be moved to off topic, or metals, or investments and there wouldn't be a main discussion forum - it must be a complex quantum mathematic theorum that determines which thread goes where.

Exactly. A sliver of consistency would be appreciated.

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It seems a bit like after the lord mayors parade. Now the downturn is upon us talk has moved on to anything but HPs. Some of the other subforums are dead.

Damo

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  • 296 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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