Reply to: Lending rules to be tightened up

[AtW]

Why do I want to go to prison? I dont want to meet Mr Big in the shower......

Not in England, but if you lived in Turkey you'd be ok with it?

[BrilloPad]

It's one of the debts that can get you sent to prison.

Why do I want to go to prison? I dont want to meet Mr Big in the shower......

[BrowneIssue]

Why would I want to not pay it?

It's one of the debts that can get you sent to prison.

[BrilloPad]

Try not paying your poll tax and see what happens.

Why would I want to not pay it?

[BrowneIssue]

Maybe they should re-introduce debters prisons to make people more wary of taking on debt.

Try not paying your poll tax and see what happens.

[minestrone]

Thats a great solution : until the banks use complex instruments to move the loans off balance sheet. Rather like what happened with the credit crunch.....

Maybe less regulation is needed? And smaller banks so that if they go to the wall it does not matter so much.

What happened to the Derren Brown quote?

[AtW]

And smaller banks so that if they go to the wall it does not matter so much.

B&B got into this tulip too and also others.

[AtW]

Thats a great solution : until the banks use complex instruments to move the loans off balance sheet. Rather like what happened with the credit crunch.....

No - customers were getting morgages and that's when reserves should have kicked in. Complex instruments were used to pass "risk" on these morgages to the willing parties: this should have never happened, banks that issue loan should own it unless someone takes over the bank, it should not be possible to sell off bad or good loans - if you made the loan you have to keep it for the rest of the loan's life.

[BrilloPad]

Well, banks are supposed to be liable for loans in the first place - if they go bad they'd lose money. Problem is that with house prices always raising they think they can't lose money.

The solution is to make bank put more money aside on a zero interest BoE account for each pound they lend to consumers when it exceeds set threshold, ie: 3 times salary for house should have low reserve ratio, anything considerably above will make bank set aside a lot of capital.

Thats a great solution : until the banks use complex instruments to move the loans off balance sheet. Rather like what happened with the credit crunch.....

Maybe less regulation is needed? And smaller banks so that if they go to the wall it does not matter so much.

[minestrone]

Lending rules to be tightened up

http://news.bbc.co.uk/1/hi/business/8312900.stm

The Financial Services Authority will make banks liable for loans if they do not check customers can afford them.

Why cant people decide first if they can afford them or not? If they cant afford them then dont take them out.

Maybe everyone should be wrapped in cotton wool......

Depends on what your definition of thick is but really about 40% of the population is thick.

The personal resonsibility option would never work, someone has to step in and say doing 70 mph in your car is wrong outside a school and giving ex convicts firearms is not a smart idea.

Most laws are there to stop stupid people doing stupid things, people with brains do not need laws, sadly the country is formed and shaped by the lowest.

[AtW]

The Financial Services Authority will make banks liable for loans if they do not check customers can afford them.

Well, banks are supposed to be liable for loans in the first place - if they go bad they'd lose money. Problem is that with house prices always raising they think they can't lose money.

The solution is to make bank put more money aside on a zero interest BoE account for each pound they lend to consumers when it exceeds set threshold, ie: 3 times salary for house should have low reserve ratio, anything considerably above will make bank set aside a lot of capital.

[Doggy Styles]

I look upon it more as (Vivienne)Nicholsononomics.

Good point, although she spent money she actually had.

Then again, it was money she was gifted...

[BrilloPad]

Because people have been changed by 12 years of Brownonomics, which is the opposite.

I look upon it more as (Vivienne)Nicholsononomics.

[Doggy Styles]

Why cant people live within their means? Its only basic Thatcheromics.

Because people have been changed by 12 years of Brownonomics, which is the opposite.

[BrilloPad]

I have also been shafted in my time. Its part of learning.

Maybe they should re-introduce debters prisons to make people more wary of taking on debt.

Why cant people live within their means? Its only basic Thatcheromics.