Tuesday, 22 April 2008

Darling meets the Banks

So Darling is lining up the banks for a chat today.

I predict that he will be given some home truths. The banks will likely take the £50 billion on offer and use it to shore up their finances rather than reduce their lending rates.

I will be amazed if the lenders relax their lending criteria. They were warned years ago by the BOE and the regulator that they were allowing people to borrow too much. They did nothing, made huge profits, forced the housing market into a bubble and left people in debt up to their necks.

Now the banks are lending more sensibly, Darling thinks there is a lending crisis. Maybe Darling and Gordon Brown should have acted 6 years ago and called the lenders in to query their relaxed lending criteria. But that would not have helped Gordon's debt fuelled boom.

No more Boom and Bust. Now it's Bubble and Pop.

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