Do banks only lend money to people/companies, that don't actually need it?

[PeteMorris]

doing well and having limitless cash dont always go together

 

A company that has limitless cash wouldn't need it. Only 'sensible' companies would expand rationally, (ie in small stages), and if they're doing well. Why would they need funding?

 

Are you saying the scheme will work and get the economy going again?

[melthebell]

A company that has limitless cash wouldn't need it. Only 'sensible' companies would expand rationally, (ie in small stages), and if they're doing well. Why would they need funding?

 

Are you saying the scheme will work and get the economy going again?

no idea BUT what needs to be done is to get cash flowing, get people spending, NOT JUST cut after cut after cut, so people CANT spend

[PeteMorris]

no idea BUT what needs to be done is to get cash flowing, get people spending, NOT JUST cut after cut after cut, so people CANT spend

 

I agree with you.....but I don't think this is the way forward.....it's no better than it is now!...banks won't lend and people won't spend.

 

VAT cuts maybe and stuff like that is really the only way to get people to splash the cash!

[NorthernStar]

I agree with you.....but I don't think this is the way forward.....it's no better than it is now!...banks won't lend and people won't spend.

 

VAT cuts maybe and stuff like that is really the only way to get people to splash the cash!

 

Just read the following quote on the ft website:-

"Nationalising RBS on the table

Senior government figures are discussing the possibility of buying out private investors in Royal Bank of Scotland and fully nationalising it amid mounting frustration at banks’ failure to lend to British businesses."

Long overdue in my opinion, but I never imagined a Tory led government would even hear of such a thing - another interesting storey to follow.