Northern Rock is the Government's surrogate for lending money to revive the economy. They're going to up their lending by up to £14 billion or so in the next couple of years. The BBC report says that the new money will be a mix of new deposits, repaid loans AND GOVERNMENT MONEY.
Although the last part is, of course, my capitalisation (sic), it's a clear indication that the Brown administration is going to waste more money. Only a government would want to increase a mortgage portfolio at this time.
Ok, it's only a fraction of the £127.3 billion the UK Treasury will borrow this year but it's a bad signal for the market. At least we know it won't be the 100% loans, as dear old Gordon's decided this is a really bad things. But just how bad will it be when the Bank of England starts printing money & the government of Her Majesty of the United Kingdom chip in from the sidelines with a few more bob.
I say that HM Queen Elizabeth II should step in and appoint a caretaker government right now as the current lot have proven themselves to be utterly useless.
No comments:
Post a Comment