It's five years since the beginning of the financial crisis yet we are still having to listen to politicians talking about new 'banking reform bills' to be brought in. Makes you think, 'What the hell have they been doing up until now?'
A month ago parliament discussed bringing in a new interest rate cap for high street 'Pay day loan' anbd money shops, etc. But then backed out of it. It is now back on again as part of apparently a new 'Banking Reform Bill'. So when a cap is likely to actually go into effect is any one's guess. Unfortunately there are a few things clouding the issue for George Osborne, which is for sure delaying any necessary actions......
To start with, these loan shops don't collect savings deposits, so they are taking investment from financial institutions and borrowing money from the big banks for their needs. The loan shops are now big business for the banks. If you think that George Osborne is going to make the banks lose out on business at the expense of a million poor people, you probably need to look a bit more deeply into Tory policies and the way the lobbying system works.
High streets of most towns are littered with these eye sores. Any new major regulations could see some of them closing. But I just don't see the new regulations being stringent enough to do this. A month ago there was all kinds of talk about how the costs of borrowing would be reduced , but then at the last minute, George Osborne backed out of the interest rate cap issue............
We don't hear much about the problems these businesses cause, but that is obviously because they are under protection of the finance industry. This means the media doesn't give them too much of a tough time. The media generally doesn't go into much detail on the effects the financial system is having on individual people. You can find the reasons for this in other posts in X-ECONOMICS.
The fact is that when people use these loan shops, other out standing debts they may have for example on credit cards becomes a much higher risk. If some one borrows some money from a loan shop because they are near their credit card limit before Christmas and then struggles to pay that money back the problems on all those debts escalate. Before long, bankruptcy may seem the easiest way out. This happens to many people and is costing us all a fortune. This is because that people defaulting on credit is more of a problem for the public than the finance industry, as the finance industry simply removes the risks of these debts from themselves onto investments which they sell. Pension funds get hit hard by this. It is an abuse of savers by the banking industry. An abuse, that unless people spread the word, many will be unaware of what is happening to their pension fund whilst they pay into it every week..........
.................If it wasn't for this unloading of risk by the financial system, we wouldn't have our high streets littered with money shops and pay day loan shops!
If the financial system had to pay for the economic problems these high interest lenders cause, we wouldn't be in this situation. The lenders wouldn't exist. If in any doubt about this, may be you should compare the return you are receiving on your pension, as compared with a top banker's wages and bonuses!
......................Now it's all beginning to make sense, isn't it..?... !....
Whilst George Osborne beats around the bush on whether to enforce a new interest rate cap on pay day loans, the bank of England still claims that the Bank of England base interest rate being kept low is to help the economy.........?
Slightly sceptical about this to say the least............-For the reason that, if the government really cared about the economy, they would have restricted the interest rates on pay day loans long ago....-You see, the governments policies just don't add up..........Low base interest rates are not to help the ordinary people. They are due to a vested interest of the government.
Helping let's say, middle income people with their mortgages, whilst at the same time letting slightly less well off people be crucified by unregulated landlords who have no restrictions on the rent they charge (....and no restrictions on pay day loan companies they may use!) seems hypocritical. The fact is there are other reasons why the base rate is kept low, and it nothing to do with ordinary people. It's all to do with the financial industry and stock markets. For example preventing corporations involved in buyouts from collapsing under irresponsible debts and conveniently keeping down the national debt interest rate low!
................This is evidence that the government policies on the whole are based on the success of the stock markets and finance industry as opposed to the ordinary people. Irrespective of their claims.............. But what is most annoying is those supposedly clever people on the BBC will never expose the gaping holes in the logic and claims of the government, whilst they obviously continue to mislead the majority of the public!
.
A month ago parliament discussed bringing in a new interest rate cap for high street 'Pay day loan' anbd money shops, etc. But then backed out of it. It is now back on again as part of apparently a new 'Banking Reform Bill'. So when a cap is likely to actually go into effect is any one's guess. Unfortunately there are a few things clouding the issue for George Osborne, which is for sure delaying any necessary actions......To start with, these loan shops don't collect savings deposits, so they are taking investment from financial institutions and borrowing money from the big banks for their needs. The loan shops are now big business for the banks. If you think that George Osborne is going to make the banks lose out on business at the expense of a million poor people, you probably need to look a bit more deeply into Tory policies and the way the lobbying system works.
High streets of most towns are littered with these eye sores. Any new major regulations could see some of them closing. But I just don't see the new regulations being stringent enough to do this. A month ago there was all kinds of talk about how the costs of borrowing would be reduced , but then at the last minute, George Osborne backed out of the interest rate cap issue............
We don't hear much about the problems these businesses cause, but that is obviously because they are under protection of the finance industry. This means the media doesn't give them too much of a tough time. The media generally doesn't go into much detail on the effects the financial system is having on individual people. You can find the reasons for this in other posts in X-ECONOMICS.
The fact is that when people use these loan shops, other out standing debts they may have for example on credit cards becomes a much higher risk. If some one borrows some money from a loan shop because they are near their credit card limit before Christmas and then struggles to pay that money back the problems on all those debts escalate. Before long, bankruptcy may seem the easiest way out. This happens to many people and is costing us all a fortune. This is because that people defaulting on credit is more of a problem for the public than the finance industry, as the finance industry simply removes the risks of these debts from themselves onto investments which they sell. Pension funds get hit hard by this. It is an abuse of savers by the banking industry. An abuse, that unless people spread the word, many will be unaware of what is happening to their pension fund whilst they pay into it every week..........
.................If it wasn't for this unloading of risk by the financial system, we wouldn't have our high streets littered with money shops and pay day loan shops!
If the financial system had to pay for the economic problems these high interest lenders cause, we wouldn't be in this situation. The lenders wouldn't exist. If in any doubt about this, may be you should compare the return you are receiving on your pension, as compared with a top banker's wages and bonuses!
......................Now it's all beginning to make sense, isn't it..?... !....
Whilst George Osborne beats around the bush on whether to enforce a new interest rate cap on pay day loans, the bank of England still claims that the Bank of England base interest rate being kept low is to help the economy.........?
Slightly sceptical about this to say the least............-For the reason that, if the government really cared about the economy, they would have restricted the interest rates on pay day loans long ago....-You see, the governments policies just don't add up..........Low base interest rates are not to help the ordinary people. They are due to a vested interest of the government.
Helping let's say, middle income people with their mortgages, whilst at the same time letting slightly less well off people be crucified by unregulated landlords who have no restrictions on the rent they charge (....and no restrictions on pay day loan companies they may use!) seems hypocritical. The fact is there are other reasons why the base rate is kept low, and it nothing to do with ordinary people. It's all to do with the financial industry and stock markets. For example preventing corporations involved in buyouts from collapsing under irresponsible debts and conveniently keeping down the national debt interest rate low!
................This is evidence that the government policies on the whole are based on the success of the stock markets and finance industry as opposed to the ordinary people. Irrespective of their claims.............. But what is most annoying is those supposedly clever people on the BBC will never expose the gaping holes in the logic and claims of the government, whilst they obviously continue to mislead the majority of the public!
.
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