Building the Economy back to growth

The plans announced by the PM and DPM today look really good especially the bit about underwriting loans to property developers and housing associations. This should be a good start as long as the banks actually loan.

This will be the real crux, as with the idea of QE and the over 300 billion pumped into the money markets, where is it, sat with the banks, making them more profits and paying bonuses to the staff not where it should be in the hands of the people and businesses that need it.

The following link is to a blog on the banks and their profit – http://ukhousebubble.blogspot.co.uk/2012/07/uk-bank-pre-tax-profits-higher-now-than.html

The report shows that the most vital aspect and the one group of players most hit by the crisis back in 2008 are now just four years on making more profits, how come especially with the bad debts and all the other problems that caused the crisis. They put up their interest rates and took the money from the BoE which was supposed to filter down to the peoples hands.

As the economy needs money, people need jobs to give them the ability to buy goods, businesses need the orders so they can make more and hopefully employ people. All of those are being effected by the fact the banks are a law unto themselves it seems.

Deal with the reluctance to lend and pretty quickly I do believe we will see a turn around in the economy.

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