Timmy elsewhereOctober 3, 2016 Tim WorstallTimmy Elsewhere12 CommentsBack again at Seeking Alpha: If Low Interest Rates Are Busting Banks And Pensions Then When Are We Going To Raise Them? previousTimmy elsewherenextThis is sensible 12 thoughts on “Timmy elsewhere” Diogenes October 3, 2016 at 9:48 pm What parts of the economy are not fucked? Saving is. The tax and benefits bit is. Banks are not lending to business and businesses are hoarding cash. Something needs to reset. For 8 years fiscal policy has been tight and monetary policy loose and the combo has achieved stagnation. How about easing off VAT a touch and letting businesses earn a bit of interest? Bloke in Germany October 3, 2016 at 10:36 pm No. I have to install the “free” app to read it. Fuck that. jgh October 3, 2016 at 11:15 pm BiG: No you don’t if you don’t mind reading plain text. 😉 Martin October 4, 2016 at 1:32 am Banks are not lending to business? Then alternate lending options are used. Should banks be lending to business? Hell no, not unless the business does not need the money. Cannot think of anything riskier the banks could do. And I run a business myself. bloke in spain October 4, 2016 at 8:27 am I’d second Martin, on this. If business needs risk capital, that’s what investors are for. Diogenes October 4, 2016 at 3:35 pm BIS and Martin, perhaps that would explain why 96% of loans to businesses in the UK are still made by high-street lenders? https://bankunderground.co.uk/2016/05/03/the-growth-of-peer-to-peer-lending-platforms-and-prospects-for-banks-disintermediation-hype-or-real-threat/#more-1705 bloke in spain October 4, 2016 at 4:09 pm @Diogenes Because businesses not stupid. Banks charge less for money than investors, who would require compensation for risk. Banks pass on risk to the taxpayer via the deposit guarantee scheme & the “too-big-to-fail” arrangement they have with government. PF October 4, 2016 at 7:15 pm Banks are lending to businesses (from where I stand)? And yes, risk and return – hence, yes, the cost of debt is less than the cost of equity, as debt lenders get priority / security (on assets) and all that? Or perhaps I missed what you guys were getting at? Diogenes October 4, 2016 at 9:13 pm Pf Bank lending to businesses has stagnated over the last few years and businesses have been building cash piles, as documented by BoE. Alternative sources do not seem to have stepped in. According to BoE stats. So banks have not been lending and businesses have manipulated cash flows. Both conclusions disputed by BIS and Martin without any sources Diogenes October 4, 2016 at 9:15 pm But would it not be better if access to funds were easier? Diogenes October 4, 2016 at 9:17 pm Oh BIS, the home builder accounts show their land banks growing while their completions are static. A market opportunity for you. john77 October 4, 2016 at 11:45 pm @ Diogenes Actually the accounts of the housebuilders show completions growing. Try reading them – free from Companies House! Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.