Bank lending and deposits


BBA Lending statsSource: BBA

Original publication


I repeat: WOW!

You want to know how retail sales aren’t falling off the cliff and how millions of folk, in the UK, are surviving?

Rising house prices?  No.

Rising incomes?  Behave.

Falling costs of living?  Say, what?

Falling fuel costs?  Now you’re making me laugh.

No.  It’s rising unsecured debts.  Yesterday, the British Bankers’ Association announced lending statistics up to September 2013.

The British Bankers’ Association is the representative body for the UK’s banks.

Oh, everyone knows that mortgage debts are rising Davis.  It’s rising mortgages and house prices.  Don’t waste our time.

Oh, do they know that now?

According to the Bankers’ mouthpiece, mortgage lending is DOWN year on year.  See the red line above.  First time it has been down y-on-y for many years.  No, everyone DOES NOT KNOW mortgage debts are rising.  They are brainwashed.

No, the real news is that unsecured lending is UP year on year.  Overdrafts, car loans, kitchen loans, other personal loans.

Pay day loans are ON TOP.

This is how hundreds of thousands or millions of families are not going under.  Yet.

They’re taking out more and more loans. To tide themselves over.

Until what???  They get a better job?  They win the Lottery?

Households are drowning in debt.  They can barely survive even with the lowest borrowing rates (mortgages) in history.  Yet they need YET more debt just to survive.

We have an army of debt slaves in the UK (and many other countries).   As I’ve said before, they are working for the taxman, the bank and themselves – in that order.  And the last is not seeing anything.  Hence the annual rise in unsecured lending.

People are so stupid to take on yet more debt.  They think “we can’t pay the bills.  We’ll borrow more.”  Yeah, that’ll solve the problem.

Look, if you’re up to here in debt, the thing you HAVE to do is get out of debt.  Sell your house and pay off all your debts.  If you have to move in with relatives, well welcome to the real world.  Not the one that the elite wants you to believe in – that, for example, house prices will rise for ever.  That is pure fantasy.  Get out of debt then build your life debt free.

If you don’t have any equity then sell it anyway and get rid of debt.  How can you not have equity with prices where they are?  What the Hell did you do all these years you lived in it?  Oh, you borrowed against it.  Again and again.  And you blame someone else?

If you have loads of equity and not too much debt (eg less than 2 x joint income) AND your income is very secure, then don’t sweat.  Enjoy!

If you are a tenant, congratulations.  Rents are cheap in relation to capital prices.  Dirt cheap.  4% to 2% of capital value is the norm.  Dirt cheap.

Even in London renting can be cheap.  Really nice 2 bedders are c £1700/m – £850/m per person sharing.  Against a capital value of £600k.  Dirt cheap.

Stay out of debt.  Pay back the Pay Day(s).  Then the high interest loans and cards, and so on.


Gosh what a thought!  Get out of debt.  Preposterous!

What’s the title of this blog?

The whole system is messed up.  Due to excessively low interest rates the Government (any Government) continues to borrow vast amounts to pretend all is well and buys votes at elections.  Low rates means a weak currency which means high import costs which means rising costs of living for everyone in the country.  It also means higher house prices so the rich get richer and the less rich are increasingly screwed.  The poor are always poor.

Borrowing rates (mortgages) will not always be this low.

The middle class – the bulk of folk – will not be middle class in the future.

The taxpayer is the guy who works for the Government but who hasn’t taken the Civil Service exam.

Ronald Reagan

Follow this blog (by clicking, up on the right ‘Follow’ in blue) to receive new posts straight into your In Box.

This entry was posted in Uncategorized. Bookmark the permalink.

17 Responses to Bank lending and deposits

  1. Anonymous says:

    the rule of law = what rich white people introduce after they have stolen everything and raped everyone.

  2. Anonymous says:

    also, not sure of your tony blair definition of middle class. wearing a cheap tie to go to work in a call centre doesn’t make you middle class. by definition, the middle class earn their money from rents and shares.

    as for the assertion that “the poor are always poor”, that is just a thought terminating cliche. the “poor” in scandinavia or the netherlands are quite comfortably off compared to their anglo saxon counterpartds.

  3. Anonymous says:

    one more thing – surely stagnating wages , workfare and zero hour contracts are also a huge factor in people being dependent on payday usuary.

    • yet our whole system is inflationary. Were it deflationary we could actually afford you know food and heat. No need for more crap debt

      • Anonymous says:

        which country has decent living standards for the lower paid without collective bargaining or a minimum wage? there isn’t one.

  4. Anonymous says:

    as for japan, they are in a much less precarious position than the UK. they are huge international creditors and their debt os owned by japanese pensioners. it is also perhaps the most socially cohesive country in the world, unlike cameron’s britain.

  5. Anonymous says:

    very good piece, JD, although like doug, i would argue that it is the banks more than the taxman. nowadays the taxman is merely an intermediary handing over the public sector to serco et al and paying off unsecured bank gambling debt.

    as for reagan – see for yourself who he worked for –

  6. peter farmer says:

    Spot on Jonathan – superb.
    With deposits AND secured loans heading south, then unsecured credit HAS to rise and continue to rise or deflation is inevitable. With sources of unsecured loans drying up we could well be heading for Fisher’s deflationary spiral – it’s what’s needed though if we are to get back to a properly functioning economy.

    • Thanks

      Actually deposits have been rising annually. I guess people are saving as hard as they can (those who can) and hoarding for what is happening – higher and higher costs of living and increasingly insecure incomes

  7. Doug says:

    Fine, up to the Ronald Reagan quote – then you gone and spoilt it!?
    The government is a wholly-owned subsidiary of the Banks.

    • That is a naive idea that offers to “rein in” the bankers using the State (contradiction) while leaving the State all its power, i.e. let’s elect “the good guys”. It’s not JP Morgans or Goldmans who take 50% of your income at source and much more afterwards while threatening you with fines, imprisonment or death. It’s the government. If banks did it outright as the State does it, it’d be seen as illegitimate. Regardless, there are many power struggles within any government, different interest groups etc. If it’s there, it will be used.

      • Anonymous says:

        have you heard of the city remembrancer? the banks have owned the government since henry viii.

        as for the talk of government “violence”, ie – taxation, that used to be worse under the east india company.

      • Anonymous says:

        so, let’s get rid of the state and the “tyranny” of the 51% and replace it with feudalism?

Comments are closed.