I've had a chance to think more about the £330 billion being loaned to firms #insomnia
While it's vital they get help, I fear it will result in most of that money just being handed to the banks one way or another. If the businesses fold anyway, will the loans have priority?
While it's vital they get help, I fear it will result in most of that money just being handed to the banks one way or another. If the businesses fold anyway, will the loans have priority?
In other words, will the banks that made the loans get first dibs on the assets of the business? (Or the Government, if it makes the loans directly - could we be about to see a step change in the number of properties and businesses it owns.)
If so that hurts creditors who will already be hurting. Suppliers who haven't been paid will find a bank or the Government in line ahead of them for whatever assets are left.
I genuinely don't know. Something truly drastic has to be done, but I worry that *something* isn't this.
I genuinely don't know. Something truly drastic has to be done, but I worry that *something* isn't this.
Someone who knows vastly more than me on the subject: "It is very hard to imagine a Chancellor who has ever so dismally failed to rise to the challenge with which they have been presented. Sunak managed to be that failure today."
taxresearch.org.uk/Blog/2020/03/1…
taxresearch.org.uk/Blog/2020/03/1…
