Is it lack of credit that is stalling the economy?

[DimPrawn]

Brown and Co. keep telling us that this downturn is simply due to lack of cheap credit.

So, if the banks start rolling out 10x income liar loans at 1% APR, are you going to borrow and spend on buying property or will you simply wait for further house price falls?

[Bagpuss]

If we all lend out next door neighbours £200k there would be no problem. Where are Northern Rock when you need them?

[Mich the Tester]

If we all lend out next door neighbours £200k there would be no problem. Where are Northern Rock when you need them?

I’m not lending my neighbours loads of cash because the man’s in the building trade and liable to lose his job very quickly. If they get desperate they can have some food fro us and I don’t mind giving them a lift to interviews, but the last thing anyone with problems needs is a loan.

[TimberWolf]

We need some hyperinflation. Do your civic duty and start printing tenners.

[Mich the Tester]

We need some hyperinflation.

How about blowing up balloons?

[PM-Junkie]

As someone else has said, using government logic, if they wanted a policy to get rid of the obesity problem, they would nationalise Sainsbury's and get them to produce lots of cheep doughnuts for fat people to eat.

Crazy.

[BrilloPad]

I think the issue is confidence as much as credit.

That and a unsustainable bubble that had to be let down : it never deflates it always bursts......