Friday, May 28, 2010

What a pickle…

Robert Peston: A coalition housing crash?

CGT ...house prices falling like confetti after the Con-Lib marriage... How an election changes everything...

Posted by bemused @ 12:15 PM (1923 views)
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4 thoughts on “What a pickle…

  • I suggest you all read this article and then the comments below it from non HPCers.

    I’m sure Pestons Blog finds it’s way to the cabinet offices.

    You should all see what the generaql public with a small amount of economic knowledge think of the current situation.

    I doubt their thoughts will be ignored at No.10 & 11.

    ReCaptcha : Fall Prophet (Hmmm I like that one, think I might change my tag to that )

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  • mark wadsworth says:

    The comments are almost universally in favour of higher CGT, OK, that’s the wrong way of pricking the bubble, the easiest way is for the Lib-Cons to insist that the banks repay the £300 billion plus which the previous government lent them, starting April 2011, but their hearts (and heads) seem to be in the right place.

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  • From Peston’s blog: “And if banks’ profits recovery were to be set back by a housing market slump, that would have an effect on their ability to provide credit – which in turn would be a setback to the more general economic recovery”.

    Not true. The reason banks aren’t providing credit is that they can’t find good potential customers who can’t raise money elsewhere. In the US, for instance, there are many healthy banks which didn’t take big hits on property – but they aren’t rushing in to fill the lending void to smaller companies and thereby gain market share. Also bigger companies can raise money on the bond market or borrow in the commercial paper market at low rates, but they aren’t rushing in to take the business that cash-strapped smaller businesses are losing. The simple fact is that every recession sees banks unwilling to risk lending to businesses which are struggling.

    The idea Peston expresses here leads to the big lie – that we have to save the banks in order to save the economy. Come back, Badger, and tell us again how you saved us from going to ATMs and finding them empty.

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  • Surely if they simply split the Banks into High Street Banks and Investment Banks. Then the High Stret Banks can attract savings and lend them out and provide business with finance in an orderly fashion.
    Providing we have at least 20 of these (not just 3 or 4) then they’ll all know they are not too big to fail and lending will resume in a sensible fashion.
    All savings should be safe (no limits) including business accounts.

    Investment banks can do as they do. There should be a liquidity level imposed to stop them taking too bigger risks.

    Job done. I really don’t know what all the fuss is about.

    The governments let banks get out of control. It didn’t work, there’s a price to pay (reduction in asset values – mainly property). Now lets just re-organise and get on with our lives.

    Simples

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