It’s the rich wot gets the money, it’s the poor wot gets …

Posted: August 1, 2012 in Banks, economy
Tags: , , , , , , ,

To mis quote the well known bawdy music hall song.

Mr Mervyn King, champion of the poor (bankers) has come up with a wizzard wheeze lets lend money to banks at 0.25%, yes a quarter of a per cent, so they can lend it to non financial institutions.  It would seem more of our money is to be loaned to  the banks at a knock down rate so they can lend it to us.  No news about how much it will cost to borrow this stash of cash from the benevolent banks but the same article heralds some banks already cutting their rates to below 3% which probably means 2.97% or similar. So more taxpayers money being given to the banks so they can charge us more money for borrowing it back. Come on Mervyn, do something radical. Lend it to us for .25% and let the banks use some of their own stockpiled money to lend to each other. Even better legislate that they should use their money to lend at .25%.

Ooh cloud cuckoo land again.

http://www.bbc.co.uk/news/business-19068444

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Comments
  1. Tee hee. I was looking for some light reading before I do something boring and this fitted the bill nicely, if you consider banks and loans and money light reading. My simplistic mind concluded that it is yet another good deal for banks. Can they ever lose? (Don’t depress me by answering that).

  2. Like that Toyah Wilcox song – All banking is a mystery to me!

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