If the government stops paying off its debts, people might rush to lend the government money. Here's why that may happen — and why, in the long run, it would be a problem.» E-Mail This » Add to Del.icio.us
The trio are investors in Senone, a £2.5 million venture put together by Ian Currie, a former director of Bolton Wanderers, with each thought to have contributed about £200,000 to the partnership, which has been lending to small business for more than a year and has given loans to more than a dozen different companies.
Stephen Hester has waded into the controversy about an apparent lack of lending for smaller businesses, saying Royal Bank of Scotland (RBS) £20bn of cash it was “desperate” to lend out, but companies were not prepared to borrow as they lacked faith in the economic recovery.
By Jack Holland:When I hear IMF and Europe spoken in the same sentence, I reach for my laptop to buy more shares of SPXU. I am amazed that bankrupt nations are able to lend the IMF money so they can borrow it back to bail themselves out. How does that work? Sounds a bit like money laundering to me. But these are just rhetorical questions.