Funding for Lending: Osborne’s latest wheeze to kickstart economy | Business | The Guardian

Conservative Party (UK)

Conservative Party (UK) (Photo credit: Wikipedia)

This is a good article from Heather Stewart in the Guardian. Check it out!

Funding for Lending: Osborne’s latest wheeze to kickstart economy | Business | The Guardian

For me, it looks like another desperate measure from a desperate Chancellor. I am amazed that backbench Tory MPs are not looking for a new Chancellor to improve their chances at the next election. The likes of David Cameron and his Cabinet will get rich pickings in other fields if the Conservatives suffer heavy losses in the next election but backbench MPs should perhaps be worrying about their next career.

What do you think?

2 responses

  1. This will only work if the banks are forced to lend to businesses and people.

    The problem is very few people are now creditworthy enough to qualify for mortgages and loans on standard terms so the banks could offer them on very unattractive terms and then claim low takeup as a reason for non compliance with Osborne’s measures.

    Similarly there is little housebuilding so I cannot see this working. The same applies to business lending and to definitions.

    There is a world of difference between a loan actually approved and drawn down and a loan initially approved on terms that only a confirmed and certified lunatic would accept.

    The banks could easiliy accept the £80 billion gbp from Osborne and then trick the Civil Servants into believing that lending had taken place.

    Sadly for people with “razor sharp minds” and “Rolls Royce brains” they seem to be lacking in commonsense and the ability to deal with streetwise operators in the City and people like Rupert Murdoch.

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