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Whats the difference between saving businesses and saving the economy ? Surely forced sales and calapsed businesses would devalue everything .What's E="som farmer, post: 6925142, member: 86168"]
this money, is cleverly designed, it doesn't matter if you need it, or not, if you qualify, or not. It is simply a cheap way to inject money into the economy, all that matters, is max take up, and max spending. The fact is, for every £1 spent by a farmer/business etc, goes round x7 in the economy, so £50k to a business = £350k injection into the economy, very clever move by the treasury. Nothing about 'saving' businesses, it's all about saving the economy, and a very high default rate, is acceptable, because it will (hopefully) have done it's job. The treasury wanted this to be an automated system, request in, money out, NO bank staff to be involved, bit to ambitious that, but it tells you, the treasuries thinking and aim.
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if money circulates, businesses can trade and survive, if money does not circulate, they cannot survive, either way, has a ripple effect, one good, one bad. Farming is a very resilient business, others are not, while we have very few fail, other types, have high rates of failure. You cannot look at this loan, from a farming point, all we are, is a business, nothing more, or less, and the loan is available to all businesses. If, for example, we took the money, paid of some finance etc, 1 year 0% and no repayments, that is a lower rate of % than the finance, plus, we would have, those payments, gone, for a year, which would leave us, those repayments, available to spend, this year, not explained that well, but hope you get the basics !