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
No. I have to install the “free” app to read it.
Fuck that.
jgh
BiG: No you don’t if you don’t mind reading plain text. 😉
Martin
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
I’d second Martin, on this. If business needs risk capital, that’s what investors are for.
Diogenes
BIS and Martin, perhaps that would explain why 96% of loans to businesses in the UK are still made by high-street lenders?
@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
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
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
But would it not be better if access to funds were easier?
Diogenes
Oh BIS, the home builder accounts show their land banks growing while their completions are static. A market opportunity for you.
john77
@ Diogenes
Actually the accounts of the housebuilders show completions growing. Try reading them – free from Companies House!
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?
No. I have to install the “free” app to read it.
Fuck that.
BiG: No you don’t if you don’t mind reading plain text. 😉
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.
I’d second Martin, on this. If business needs risk capital, that’s what investors are for.
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
@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.
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?
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
But would it not be better if access to funds were easier?
Oh BIS, the home builder accounts show their land banks growing while their completions are static. A market opportunity for you.
@ Diogenes
Actually the accounts of the housebuilders show completions growing. Try reading them – free from Companies House!