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    Consumers warned as bank regulations eased.

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    papa_umau
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    Consumers warned as bank regulations eased.

    Post by papa_umau on Tue 05 Jul 2016, 11:47 am

    Consumers warned on the risk of high debt levels as bank regulations eased.

    The Bank of England has warned that high levels of debt could make consumers "vulnerable" to any economic downturn following the referendum.

    The Financial Policy Committee (FPC) also said banks would not have to set aside more capital next year because economic risks were "materialising".

    The easing of those capital requirements potentially frees up £150bn for lending, the FPC said.

    That could help if uncertainty causes the economy to slow down.
    "This is a major change," said Bank of England governor Mark Carney.

    The full report from The BBC HERE




    Put quite simply, if there is more money available to throw at borrowers and this money is easier to get by all levels of our society, many of them will use this money to pay back more expensive loans already accrued by them.

    Borrowing can be a dangerous game and the easier it is to get loans the more people will get into debt.


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    zathrus
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    Re: Consumers warned as bank regulations eased.

    Post by zathrus on Fri 08 Jul 2016, 11:48 am

    This "credit easing", that the Bank Of England calls it, is nothing more than printing more money so that the other banks have more available to lend.

    If they ever go back to lending interest only mortgages, we are going to find that many people who couldn't previously afford a mortgage or a big loan are now going to get into "toxic" debt, as it was called, before the big crash.

    Mark Carney is going to have to watch out for that very closely.
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    papa_umau
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    Re: Consumers warned as bank regulations eased.

    Post by papa_umau on Sat 09 Jul 2016, 12:02 pm

    The only thing that Carney was "watching" yesterday was our Andy Murray beating Berdich at wimbldeon.

    Maybe he just took a day off for the tennis ?

    Great work if you can get it.


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    Nuthin fancy
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    Banks

    Post by Nuthin fancy on Sat 09 Jul 2016, 5:21 pm

    Hi all,

    Yep, very interesting. I think things are going to be volatile for quite a while now before we leave the 'shackles' of the EU and head for sunnier climes. Just be happy we are going.
    I hope Scotland does not jump into this mess!!. Only today we find:

    A Nobel Prize winning economist said Europe may have to ‘abandon the euro’.

    An analyst at French bank Societe Generale warned Italy and France could quit the single currency bloc.

    Rating agency Moody’s said the future of the entire EU was under threat.

    Experts warned banks across Europe were ‘under stress’.

    The world’s biggest hotel group predicted that the fall in the pound would lead to a tourist boom for the UK.

    The pro-EU IMF said the eurozone is ‘increasingly vulnerable to shocks’ in its damning annual health check on the region.

    It said economic growth would slow from 1.6 per cent this year to 1.4 per cent in 2017 ‘mainly due to the negative impact of the UK referendum outcome’

    It warned that within five years the region will still only clock up growth of 1.5 per cent, which could ‘undermine the recovery and raise the likelihood of stagnation’.

    Unemployment in the eurozone is 10.1 per cent, compared to 5 per cent in the UK. The figure is 19.8 per cent in Spain and 24.1 per cent in Greece, where economic turmoil has led to civil unrest. Now, interstingly that is from the IMF of all people!!!!

    The IMF said the eurozone is now under threat from growing Euroscepticism in countries including France, Italy and the Netherlands following Britain’s vote to leave the EU.
    It also warned that ‘an intensification of the refugee surge could prompt additional border controls and hinder free movement within the single market’. The migrant crisis has already seen border controls reintroduced – leaving the EU’s passport-free travel zone on the brink of collapse.

    Legrande is turning tail somewhat. She is probably privately sh*tting herslf at the prospect of a criminal conviction being on the cards in France where she is suspected of fraud.

    This is not the end, just the start. Would you want anyone joining that outfit ?. Please Scotland, see sense!.........Better OUT and glad of it !!

    Technician




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    papa_umau
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    Re: Consumers warned as bank regulations eased.

    Post by papa_umau on Sun 10 Jul 2016, 11:39 am

    Yes, the Eurozone is in quite a bit of a mess even without us stirring it.

    It will be interesting to watch it from outside to see how it goes about fixing these problems without our help.


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