Monday, January 26, 2009

Gordon Brown to the Rescue

New home enquiries have risen since Mr. Brown outlined a multi-billion pound package to help banks lend again.

This is good news, the only thing is I thought the first round of financial assistance was to ease liquidity. Seems all the banks did with that was strengthen their own balance sheets.
Similarly with low interest rates, no-one is benefiting except the banks. Savers get very little and borrowers haven´t seen the rates passed on.

Reminds me the old saying " banks will give you an umbrella when its sunny, but will demand it back when it starts raining!"

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