| Subject: Re: UK ... thanks for the trillions.. and ...Banks ignore pleas and cut loans to the real economy again |
| From: "Sir Arthur C.B.E. Wholeflaffers A.S.A." <science@zzz.com> |
| Date: 02/08/2010, 12:44 |
| Newsgroups: alt.alien.visitors,alt.alien.research,alt.paranet.ufo,sci.skeptic,alt.conspiracy |
On Aug 1, 8:06 am, Riaz Tayob <riaz.ta...@gmail.com> wrote:
[And the markets are worried about the deficit... Thatcher reduced
public spending increases to 1.5% in real terms... this lot is
cutting 30 to 40%....
there is no alternative...]
July 30, 2010 Banks ignore pleas and cut loans to the real economy
again By Sean O'Grady, Economics Editor
Despite attempts by the Government and the Bank of England to
encourage the banks to lend to the "real economy", the supply of
credit to businesses is still shrinking, while the supply of mortgages
is only crawling ahead.
The Bank of England data, released yesterday, showed that loans to
non-financial companies fell by #7.7bn in June, or about 6.4 per
cent a year.
Lending to manufacturing decreased by #2.4bn. Although volatile,
the figures do not present an encouraging picture of a banking
sector returning rapidly to normal patterns of lending, and are the
worst since the extraordinary #14bn contraction witnessed last July.
Unlike last year, the decline in lending by banks is not being
offset by an increase in capital issuance in the form of bonds and
commercial paper by private firms. These too fell by #3.9bn, the
weakest in two years.
Mortgage lending is also running well below pre-crisis levels, and
is again helping depress house prices.
The Nationwide Building Society reported a 0.5 per cent drop in
average house price values in July. It was worse than expected, and
takes the quarter-on-quarter annualised rate of decline in this
series to -5.5 per cent.
Many economists believe that house prices will end 2010 lower than
they started; the long-term restriction on new loans, as the banks
repair balance sheets and contain fresh lending to only the best
risks, will also dampen any hopes for a property revival. The cost
of borrowing is edging higher: the effective interest rate on new
mortgage business moved up by 9 basis points to 3.94 per cent in
June, its highest since December.
The National Institute of Economic and Social Research said earlier
this week that, in real terms, real estate values would be lower
in 2015 than today.
Mortgage approvals fell to their lowest since January, at 47,600,
down from 49,461 in May and net lending was just #665m, all below
the levels needed to underpin a healthy market.
Hetal Mehta, the senior economic adviser to the Ernst & Young Item
Club, said:
"Today's figures provide further evidence that the housing market
is set to dip over the coming months.
"High unemployment and the impending fiscal squeeze give reason for
consumers to remain cautious. With confidence so fragile, housing
market activity is likely to recede."
As the Bank of England looks forward to its next Monetary Policy
Committee meeting next week, the soft borrowing figures will
strengthen the hand of those on the committee arguing for no change.
In his evidence to the Treasury Select Committee on Wednesday,
Mervyn King, the Governor, said that there is "some considerable
distance to travel" before rates could return to normal and that
the MPC had its "foot firmly on the monetary accelerator".
The Bank faces unusually sharp dilemmas about policy, as inflation
will stay above the 2 per cent target for "much of next year",
according to Mr King.
They are made the more pressing because the Government has placed
the main responsibility for securing the recovery on the MPC. In
an interview with Reuters, George Osborne, the Chancellor, said:
"I have always believed that the greatest stimulating effect you
can have in the economy is a monetary one not a fiscal one and the
way to keep rates for longer... is by making sure fiscal policy is
supporting and in this case means dealing with the budget deficit."
The implication is that, should the economy enter the so-called
"double dip", it would be up to the Bank to boost the economy, not
Mr Osborne.
But the latest lending data highlight how difficult it may be to
persuade people and businesses to borrow and invest when confidence
is fragile - in Keynes's famous phrase, the Bank may be "pushing
on a string". Indeed, the latest survey of consumer confidence, by
GfK/NOP shows it falling for a fifth month running to hit its lowest
this year."
http://license.icopyright.net/user/viewFreeUse.act?fuid=OTM5MDI1Mw%3D%3D
http://snipurl.com/101zpu
-- ''''''''.'''''''''
__._,_.___ Reply to
sender<mailto:riaz.ta...@gmail.com?subject=UK%20...%20thanks%20for%20the%20tr
illions..%20and%20...Banks%20ignore%20pleas%20and%20cut%20
%20loans%20to% 20the%20real%20economy%20again> | Reply to
group<mailto:toesl...@yahoogroups.com?subject=UK%20...%20thanks%20for%20the%2
0trillions..%20and%20...Banks%20ignore%20pleas%20and%20cut%20
%20loans%20 to%20the%20real%20economy%20again> | Reply via web
post<http://groups.yahoo.com/group/toeslist/post;_ylc=X3oDMTJxY21oM2gzBF9TAzk
3MzU5NzE0BGdycElkAzIxNTc3MDcEZ3Jwc3BJZAMxNzA1MDgzNDY5BG1zZ0lkAzIwNzMwBHNlYwNm
dHIEc2xrA3JwbHkEc3RpbWUDMTI4MDY0NzYwNg--?act=reply&messageNum=20730>
| Start a New
Topic<http://groups.yahoo.com/group/toeslist/post;_ylc=X3oDMTJlcm9uOThtBF9TAz
k3MzU5NzE0BGdycElkAzIxNTc3MDcEZ3Jwc3BJZAMxNzA1MDgzNDY5BHNlYwNmdHIEc2xrA250cGM
Ec3RpbWUDMTI4MDY0NzYwNg--> Messages in this
topic<http://groups.yahoo.com/group/toeslist/message/20730;_ylc=X3oDMTM2ZXE0M
WZwBF9TAzk3MzU5NzE0BGdycElkAzIxNTc3MDcEZ3Jwc3BJZAMxNzA1MDgzNDY5BG1zZ0lkAzIwNz
MwBHNlYwNmdHIEc2xrA3Z0cGMEc3RpbWUDMTI4MDY0NzYwNgR0cGNJZAMyMDczMA-->
(1) Recent Activity:
Visit Your
Group<http://groups.yahoo.com/group/toeslist;_ylc=X3oDMTJlZTZydWlhBF9TAzk3MzU
5NzE0BGdycElkAzIxNTc3MDcEZ3Jwc3BJZAMxNzA1MDgzNDY5BHNlYwN2dGwEc2xrA3ZnaHAEc3Rp
bWUDMTI4MDY0NzYwNQ--> MARKETPLACE
Stay on top of your group activity without leaving the page you're
on - Get the Yahoo! Toolbar
now.<http://us.ard.yahoo.com/SIG=15op8jcc7/M=493064.13983314.14041046.1329843
0/D=groups/S=1705083469:MKP1/Y=YAHOO/EXP=1280654806/L=246e3d78-9d3e-11df-9664
-f36c40680fa0/B=6tCpO2KImiQ-/J=1280647606922141/K=0r_j0hV9BDgvpH07yLukPg/A=60
60255/R=0/SIG=1194m4keh/*http://us.toolbar.yahoo.com/?.cpdl=grpj>
________________________________
Hobbies & Activities Zone: Find others who share your passions!
Explore new
interests.<http://us.ard.yahoo.com/SIG=15omtp6p3/M=493064.14012770.13963757.1
3298430/D=groups/S=1705083469:MKP1/Y=YAHOO/EXP=1280654806/L=246e3d78-9d3e-11d
f-9664-f36c40680fa0/B=7NCpO2KImiQ-/J=1280647606922141/K=0r_j0hV9BDgvpH07yLukP
g/A=6015306/R=0/SIG=11vlkvigg/*http://advision.webevents.yahoo.com/hobbiesand
activitieszone/>
________________________________
Get great advice about dogs and cats. Visit the Dog & Cat Answers
Center.<http://us.ard.yahoo.com/SIG=15obgcpfm/M=493064.13814537.14041040.1083
5568/D=groups/S=1705083469:MKP1/Y=YAHOO/EXP=1280654806/L=246e3d78-9d3e-11df-9
664-f36c40680fa0/B=69CpO2KImiQ-/J=1280647606922141/K=0r_j0hV9BDgvpH07yLukPg/A
=6078812/R=0/SIG=114ae4ln1/*http://dogandcatanswers.yahoo.com/>
[http://l.yimg.com/a/i/us/yg/logo/us.gif]<http://groups.yahoo.com/;_ylc=X3oDM
TJkMTc0MTA0BF9TAzk3NDc2NTkwBGdycElkAzIxNTc3MDcEZ3Jwc3BJZAMxNzA1MDgzNDY5BHNlYw
NmdHIEc2xrA2dmcARzdGltZQMxMjgwNjQ3NjA2> Switch to:
Text-Only<mailto:toeslist-traditio...@yahoogroups.com?subject=Change%20Delive
ry%20Format:%20Traditional>, Daily
Digest<mailto:toeslist-dig...@yahoogroups.com?subject=Email%20Delivery:%20Dig
est>
Unsubscribe<mailto:toeslist-unsubscr...@yahoogroups.com?subject=Unsubscribe>
Terms of Use<http://docs.yahoo.com/info/terms/>
.
__,_._,___