Gordo has saved us

The 200 billion is sitting on the banks balance sheets, ensuring FSA tolerance levels are met!

Banks still arenet lending it, because the money markets arent working properly!

I think you'll find the banks aren't lending because there is a lack of credit worthy businesses and individuals available to lend to.

This recession was caused in the main by banks lending too much money (much of it against over-valued assets) to too many people who were unable to pay it back. THAT was caused by ridiculously low interest rates (blame Gordon Brown) - in spite of rampant inflation (look at stocks, property, commodities) caused by the same very glut of cheap money.

Lack of lending isn't the problem, the amount of debt we as a nation are already lumbered with is what is holding back the economy.

We are going to have to start consuming less and producing more, and along with the rest of Europe and the US in particular our standard of living will diminish considerably over the coming years as wages and the value of our currency come down, and consumer prices, taxation and interest rates go up.

Live 4

Sorry, but we will just have to agree to disagree. There are plenty of people that have never had any problems with credit, and cant borrow simply because they do not have large amounts of savings. Believe it or not there are good reasons for not having tens of thousands of pounds redily available! Not everyone has rich parents

Lenders are lending happily to those with 25% deposits/equity, and as the banks become healthier we will see competition return to the sector. It may take a while, but it will happen!

Firstly, I'm sorry but you don't have to apologise every time you disagree with someone.

You say the system isn't working. Can you elaborate on that? Do you mean the banks aren't dishing out loans right left and centre to anyone who asks for credit?

That is basically exactly what I am saying .

Banks have gone from one extreme to another! from 125% lending to 75% in 2 years. I am saying there shoudl be a balance. A 10% deposit seems ample to get a decent rate of interest. 10% of a houses value takes som time to save!

When yearly figures of many major companies are released, they are in the red, perhaps the banks have just given up on lending money to non functioning businesses with no business plan, as it should have done years ago, surely a good business will produce a profit with which to sustain / expand itself, not constantly bang on the bank managers door for larger and larger loan facilities.