Economy down turn part 7
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What else do the policy holders have up their sleeve?
Policy makers are using a lot of money to support the banking industry, in order to help rebuild the banks balance sheet. But unfortunately it doesn’t seem to be reaching the new lending sector of the banks because there are still an increasing number of people facing repossession, but they are trying to get to get house repossession stopped and are turning to quick property sale companies for help and advice.
The decision has recently been made by the authorities to help simulate lending by quantitative easing, which in layman’s terms means printing more money. The Bank of England has to make a decision and decide the best way of getting more cash in the system, to encourage banks to lend again. There needs to be encouragement towards borrowing and spending, reducing the interest rates to 0.5% should have done exactly that, but it still seems to be taking it’s time and there is now clear understanding to how long it will take and that is why people are looking for a quick property sale, because they can’t afford wait any longer.
