Banks and Lending
I am beginning to suspect something. There is a mis-match between the exhortations of politicians to banks to lend, the banks’ excuses, anecdotal evidence of businesses starved of funds and general reports of improvements in the economy overall.
This may be (or may not be, this is a rather early day shot) because there are two economies at work. The old one based on credit and lending, which is in decline (hooray) and a new emerging one based on earning, saving, initiative and investing. This new structure is far less dependent on banks and loans and could, if it is there, provide exactly the firm foundation on which to build future prosperity, long promoted by this writer in book and blog.
We shall have to wait a little longer to see. Fingers crossed.