Sunday, November 8, 2009

Why zombie banks are bad

Failing to address the banking crisis is hampering recovery

Good explanation of the bad effects of zombie banks. Over the last year by maintaining high mortgage charges over the base rate to cover defaults, the banks sucked out an additional 30 billion from the economy to cover their losses, aside from cutting credit availability generally. Plus charts depicting lending collapse.

Posted by stillthinking @ 07:51 PM (916 views)
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2 thoughts on “Why zombie banks are bad

  • Points up a little discussed aspect of the lack of supply of housing. If people are on tracker mortgages from pre-2008, and they’re non-portable, then they lose a great deal by moving house and starting a new mortgage witha much higher bank profit margin.

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  • Nice observation, tpbeta. Thanks!

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