Come on loosen up!
Despite signing up to packages whereby Mr and Mrs UK have effectively lent the UK banks billions, the banks are not keeping to their part of the bargain. They signed up to the agreements on the basis that they would save the banks from going under and provide the liquidity the banks needed to resume bank lending.
What has happened? The banks are still keeping their hands and cheque books deep in their pockets. Mortgages are difficult to obtain and business, particularly small business, abound with stories of uncooperative bank managers more likely to call an overdraft in rather than extend it.
Unless banks get their fingers out, we are in for a deeper recession than anyone predicted. Modern western economies revolve on credit and without it everything grinds to a halt.
I just can’t believe that those on power are going to sit on their hands whilst all this happens. Better brains than me understand what is happening and know the repercussions of failure to free up credit.
At least Mervyn King, governor of the bank of England, says he shares my concerns about the low level of lending. Apparently over the coming months, he expects lending to increase.
I just hope he is right – we are all affected.
