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Government got us into this mess and now it must fix it

Many suggestions have been made on how to resolve the credit crunch, but we think we have the definitive answer.

First, let’s be clear that the government, via the Financial Services Authority, is responsible for the situation. The regulator has broken all 12 of its Mortgage Conduct of Business rules and failed to keep the banking industry under control.

So the government should securitise all banks’ lending and place them under direct control with the exceptions of HSBC, Abbey and The Co-operative Bank. Also, staff should be recruited to monitor future bank lending.

All lending rates should be reduced to levels that reflect the base rate. This includes credit cards as the rates on these are ridiculously high.

Lending by banks should be rigorously credit scored and new lending should be at the new low rates. This would allow borrowers to start repaying debts without penal rates of interest.

Finally, let’s take banks out of the FTSE 100 and replace them with companies that make real profits.

Unfortunately, we have to realise we are now in a depression equivalent to or worse than that of the 1930s. The government must take a firm stance and either enter Europe properly and drop the pound or get us out so we can stand on our own.

Joan & Jack Ewins

By email


MP tries to ease building societies’ FSCS burden

MP Ann Cryer is introducing a parliamentary early day motion in an attempt to reduce the amount of fees building societies are forced to pay the Financial Services Compensation Scheme to fund the failure of banks.

Eurodebt partners with Complete

Debt management company, EuroDebt Financial Services has partnered with specialist mortgage and loans packager, Complete.

A strategy for success

This interview was arranged when the economic outlook was brighter but things are changing rapidly in the recession and Colin Greaves, managing director of Newcastle Strategic Solutions, turns up anyhow to fight his corner.

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery


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