LA is sure the world has gone mad, or the government at least. Why is the Chancellor considering giving more money to the banks. The reason the Banks continue to be in trouble is because of their own behavior. If they remove lines of credit from companies,charge inflated interest or indeed close perfectly good companies , the net result is a reduction in their own asset base and hence balance sheet.
If a bank causes a company to close, chances are a quarter of the debt that it leaves behind is owed to that bank as the creditors also bank with it. This is the economics of the mad house.
LA again urges the chancellor to legislate that the top 250 companies have to pay on 30 days (see previous posts). Yes they will moan, but that means 250 negotiations with financier that would pump around £15 billion into the economy. This will save companies, save jobs, save bank assets and save the tax payer billions.
Why is this not being seized by the treasury, nor the big issue for the opposition?
LA says act now, this is true leadership and if rolled out across the globe, really would stop this recession being a depression.
The annual St John PB Christmas crossword
23 hours ago
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