Telegraph: Reports that the Credit Agency Moody's has downgraded major UK Banks, the articles notes the following on the Moody's action, " The lower the rating, the higher the interest rates they pay and the more collateral they must offer. ".
Lets Get Real:
The Banks are already not lending to small business even if that business is making money, this downgraded will hit the customer, any costs that the banks see if their borrowing will be paid by the customers. The Banks do have an argument, the 2008 near death of the banking system was due to bad loans, thus the Banks don't want to be in the position that they are charged with throwing money at bad risks. The Euro crisis and the debt hold by EU Banks means that UK Banks are at risk due to the fact that in this Global economic system all the banks are linked. In other words folks at its most basic and harsh, if the EU banking system is taken down by Spain and Italy then the UK is in the toilet and is going to get flushed. If President Obama had not waisted US tax payers money with his domestic record he could have saved the EU, but the Oval spent like a gambling addict, thus is broke, who is going to save the EU folks, in fact who is going to save the Global economic system.
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