(Consumer) Credit Crunch version 2
Posted: 12 Oct 2017, 09:33
So, after 10 years of credit card fuelled consumer spending driving our tepid recovery/flat-lining since the 2008 crash the Banks have had enough:
"UK lenders plan biggest credit curb since 2008
Newsflash: British banks are planning to rein in consumer lending by the most since the financial crisis nearly a decade ago.
Lenders surveyed by the Bank of England say they expect to tighten loan availability over the next three months. That follows warnings that Britain’s debt mountain has risen to dangerous levels.
The BoE asked lenders if they expect to make more or less unsecured credit available in the next quarter. The question returned a net balance of -28.6, the lowest figure since the collapse of Lehman Brothers in autumn 2008.
That means that many more lenders expect to tighten lending rather than expand it."
https://www.theguardian.com/business/li ... iness-live" onclick="window.open(this.href);return false;
The Government really need to pull out the stops now re: Brexit. When Tory economic growth relies on more people spending more on credit cards (ie a massive Ponzi scheme), once that tap is turned off they are going to have to ensure Brexit helps not hinders non-consumer businesses to grow.
"UK lenders plan biggest credit curb since 2008
Newsflash: British banks are planning to rein in consumer lending by the most since the financial crisis nearly a decade ago.
Lenders surveyed by the Bank of England say they expect to tighten loan availability over the next three months. That follows warnings that Britain’s debt mountain has risen to dangerous levels.
The BoE asked lenders if they expect to make more or less unsecured credit available in the next quarter. The question returned a net balance of -28.6, the lowest figure since the collapse of Lehman Brothers in autumn 2008.
That means that many more lenders expect to tighten lending rather than expand it."
https://www.theguardian.com/business/li ... iness-live" onclick="window.open(this.href);return false;
The Government really need to pull out the stops now re: Brexit. When Tory economic growth relies on more people spending more on credit cards (ie a massive Ponzi scheme), once that tap is turned off they are going to have to ensure Brexit helps not hinders non-consumer businesses to grow.