One question

If there were any doubt that the prime minister is still resisting the political shift demanded by the crisis and alienation of Labour voters, it should surely be dispelled by the government\’s refusal to use its stakes in the banks to drive up lending in the face of Thursday\’s evidence of a disastrous slump in credit.

How do you \”drive up lending\”?

I don\’t mean the obvious problem of insisting that banks have higher capital ratios as you also insist they lend more (the two being mutually exclusive, you see).

Rather, how do you insist that banks lend more money if there aren\’t viable projects walking in through the door asking to borrow it?

2 thoughts on “One question”

  1. “…how do you insist that banks lend more money if there aren’t viable projects walking in through the door asking to borrow it?”

    Force them to lend to patently non-viable projects, of course.

    I think the Yanks tried a similar scheme a while ago, with mortgages. Can’t remember how that worked out, though…

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