Just how bad is the corporate debt and bank debt?

[Captain Caveman]

The average interest rate for a house/construction loan in Germany from the 60'ies to 2010 was around 5% - if more or like your UK example, I guess construction or the property market in Germany would have abruptly ended. A friend of mine bought a house in Bristol in 1981/82, so I am quite familiar with the "specifics" of the British property market.

From 2014 to 2024 those finance institution gangsters - offered housing loans at an average of 1.0% for a fixed period of 10 years. What most people never realized was that due to those extreme low interest-rates - those who already possessed property - and especially property developers simply hiked up market prices by almost 100%.

Now starting from 2024 - those property prices have already dropped at an average of 25% + the average interest rate after that binding 10 years period, are now at around 3.5%, and naturally people ain't able to service these loans which increased upon a previous monthly rate by 350%!!! - therefore the banks are now "restructuring" these left to be serviced loans - with the debtor lastly ending up with a 50% increase in view of the new debtor sum - and are paying 3-4% interest.

They basically got all whacked&screwed - but If someone told them so in e.g. 2014/15 - they simply wouldn't listen.

The banks in the UK were bailed out to the tune of billions. Rules changed so the banks had to hit a certain cash criteria. So rather than loan out billions to stimulate the economy after the collapse, they kept most of it back to achieve the new standard.

 

[Toddsterpatriot]

The banks in the UK were bailed out to the tune of billions. Rules changed so the banks had to hit a certain cash criteria. So rather than loan out billions to stimulate the economy after the collapse, they kept most of it back to achieve the new standard.

They made the same rule changes in the US. Then Obama and the rest of the Dems
whined that the banks weren't making enough loans for new businesses.

Those morons never look beyond the first stage of their regulations.

Don't understand incentives for shit.

 

[Kruska]

The banks in the UK were bailed out to the tune of billions. Rules changed so the banks had to hit a certain cash criteria. So rather than loan out billions to stimulate the economy after the collapse, they kept most of it back to achieve the new standard.

This has/is happening across the globe - but it doesn't help to change the consumers or debtors attitude towards talking loans in excess.
In order to stimulate the economy, countries are getting themselves into further national debt alongside the consumers. Therefore all governments just keep on printing money - and waiting for the next crash to come.

The factual crux with our finance system is, that the national central bank who simply purchase printed paper - are charging the respective printed value to the banks (even though there is no established value/backing on those newly circulated bills) and as they enter the ongoing stream of money globally - inflation starts to increase more and more.

 

[Captain Caveman]

This has/is happening across the globe - but it doesn't help to change the consumers or debtors attitude towards talking loans in excess.
In order to stimulate the economy, countries are getting themselves into further national debt alongside the consumers. Therefore all governments just keep on printing money - and waiting for the next crash to come.

The factual crux with our finance system is, that the national central bank who simply purchase printed paper - are charging the respective printed value to the banks (even though there is no established value/backing on those newly circulated bills) and as they enter the ongoing stream of money globally - inflation starts to increase more and more.

And it's a bit rich for governments for trying to tell banks to get to grips with their finances!!