Friday 19 December 2008

Banks are in business to lend

Edinburgh West Liberal Democrat MP John Barrett called on banks to make more money available to local businesses. Somehow I wonder what planet Mr Barrett is on.

Banks are in business to lend money, that is what they do. If businesses are finding it difficult to borrow money it will be because the businesses cannot make the case that they are a good risk and will be able to repay the loans made.

Surely with all the government money invested in the Banks the public would be rightly enraged if they thought that the Banks were being irresponsible in their lending? After all, is this not how they got into this mess in the first place?

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