Friday, 21 November 2008

At Least Jesse James Had The Decency To Wear A Mask…

Our Chancellor plans to rob banks without the need for one:
The Chancellor of Exchequer may threaten to introduce new legislation to force banks to loan money to small businesses at competitive rates of interest.
Hmm, government telling business that they must take unnecessary risks and loan money to people who can’t repay that debt, on the grounds of ‘social fairness’...

That hasn’t worked out too well in other countries, has it?
In next Monday's pre-Budget report, the Government is expected to introduce a new scheme to underwrite small business loans made by banks. Ministers will also put intense pressure on the banks in which the Government is buying a stake to lend at competitive rates again.
Banks want people to lend money to. If they aren’t doing so, it’s because they are considered a risk. They don’t want to swallow that risk. Nor do I, via my taxes.

Because when the Government says ‘it’ will underwrite small business loans, that’s what it really means – taxpayers will…

A source said: "Alistair Darling is increasingly exasperated by the banks' assurances that they are helping small businesses when they obviously are not.

"There are too many instances where the banks have failed small businesses, even those with perfectly good track records.

"Banks have got to understand they have to treat their customers fairly. We are not at the point of introducing regulations but he is not averse to going down that route."
It’s not ‘unfair’ to refuse to lend money to someone who can’t pay it back. That’s not called a loan – that’s called charity. And banks aren’t (and shouldn’t be) in the charity business…

God, we have an economic illiterate as Chancellor (again)!

3 comments:

Blue Eyes said...

Too bloody right. Why should people assume that they should be able to live on borrowed money? A loan is a business transaction between two mutually consenting parties.

The game is given away by the commentators who say that the Labour party is keen to be DOING SOMETHING. It doesn't seem to matter to them that the SOMETHING will tip us over the edge.

Letters From A Tory said...

Holy crap. Why not just nationalise all the banks and just be done with this pseudo-socialism s***?

The banks are not there to 'treat people fairly'. They provide a service - if you don't like that service, tough.

JuliaM said...

It's one of the most blatently nonsensical suggestions I've ever seen from someone at that level of government.

And with the past 10 years, that's saying something!