Clearly their goal is to benefit businesses because Joe Public who has a tracker mortgage will benefit while John Smith who has savings will lose out, so it must balance out to a certain degree.
So if making money flow back into businesses is the goal, why haven't there been any initiatives to identify the best businesses, and reward them with government backed low interest overdrafts? Is there no way that the government can back up a certain amount of lending to businesses who have already proven their worth, those who have good credit scores and who can prove that they are more likely to be able to repay any debts?
Banks would be exposed to less risk and these companies would have the cash they desperately need to continue to operate.
Specifically, companies in industries like manufacturing, exports, etc - those who have not been responsible for irresponsible borrowing or lending and those who are the cornerstone of British business in the UK and abroad?
Artist Chen Wenling's impression of The God of Materialism
I feel sorry for the people who've worked hard to put some money away for a rainy day, without greedily gambling on property by taking out giant, irresponsible debts on the hope of making a few bucks from property.
Those people appear to be getting punished by other people's materialism and greed with these cuts in interest. The days of keeping cash under pillows appear to be close!
Anyway, those are my simpleton thoughts. It will be interesting to see how all this pans out.
Looks like my idea was a good one, I didn't know the government were planning this when I wrote this post:
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