just think a couple of years before the credit crunch there would have been loads of irresponsible lenders willing to give you money

hopefully they will stay strict on lending as a long term policy. will do everyone a world of good to be forced to live within their means and will force people to understand saving if they want nice expensive things. if people are so financially disorganised they cant save then, just like the GOOD old days, they wont be able to have nice things.

 

I would still like to know what the money is for?

 

Exactly warren. Governments are quick to forget why the 'credit crunch' happened in the first place. Their solution now is to 'get banks lending again'. Presumably by force, and presumably a government full of bureaucrats know how to manage risk better than banking institutions? Lol if people believe that, they are in for a shock in a few years. Government debt is the new bubble.

 

Spot on explanation really.

The explosion in developing countries such as China were pumping billions into the financial system in the form of investments and cash. Banks had more money than they knew what to do with and supported by the property bubble in this country and in America meant that house prices were increasing faster than the average wage year on year. This meant that people had a lot of stored cash in equity on their properties, which banks could lend against. But with all this money coming in and people and companies demanding high returns on their investments meant the bank had to make money, which is lend it to people. Problem was they got reckless, they were lending it to people with no credit checks and to people who blatantly couldn't afford it, but because they had to make a return on this money they were just doing it. Lo and behold, the property bubble bursts because people who had these loans couldn't repay them which meant banks who had invested in property funds run by mortgage companies started loosing their money.

Also include the recent introduction of the Basal III regulations where banks need to retain more money in relation to what they lend and now the bigger taxes and bigger restrictions the banks are now having to be more cautious about who they lend to as they have so much less money to play with as its got to be put aside for more and more things.

So the government bails out the banks, which they had to to stop whole economies collapsing to give the banks breathing room to rebuild their capital so they can start lending again and repay the government. But at the same time the banks are being hit with tougher regulation (quite rightly) and higher taxes (debatable) to rebuild the capital reserves, but in the same breath the Government is saying the banks have to lend ignoring the fact the banks have to rebuild their reserves and pay them back at the same time and pay the taxes and insurance schemes! So its contradictory. And its not like the government is not going to make any money out of it. For RBS for example the government bought an 80% share of a company with its share value at 35p. The share value is now 48p and the government will make 37% profit on their investment, which is billions of pounds.

People need to realize the age of easy and cheap credit is over.

The government also seems to forget how much tax banks used to pay in the first place, RBS by it self paid enough tax in one year to pay for the road tax on a third of all cars in the UK (20 million of them!) In three years to the run up to the credit crunch RBS paid enough in tax to cover the bail out it received.

The government debt is the worse, the interest they pay on the debt they owe at the moment could pay to double the size of the police and fire service!

 

and for the love of all thats holy... do not take out a logbook loan!

 

otherwise youll come and take their car

 

Bloody hell whats happened to the thread?!

I pm'd mad mac but havent got anything back. All i wanted to know was about bad credit loans and the consensus is a big no so il take the advice of not to do it, on the other hand iv put the car up for sale so god willing it sells

THanks for the help and advice guys

Topic can be closed now

 

Sorry mate, been so busy ranting on here on my phone to and from work I haven't replied to it yet!!