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Bank of England is alarmed about the increase of personal debt

mark carney personal household debt

The Bank of England has been warned of complacency over the big rise in personal debt. In its toughest warning yet about the possibility of a rerun of the financial crisis that devastated the economy 10 years ago, the Bank of England admitted it was alarmed about the increase in the amount of money being borrowed on easy terms over the past year, reported the Guardian, 24th July 2017.

medialAxisAs you say, it doesn't tell us who is holding all this 'cash' (by which I mean deposits, not actual cash). But I heard on Radio 4 this morning that Warren Buffet now (8th Aug 2918) holds loads of 'cash' ($s of course), which is interesting given stock markets of late have been hitting all time highs...

2 weeks ago

Edward SmytheThose are very good points. The truth, as you say, is that banks only have to pay negligible interest to re-attract (as deposits) the money they've created (rather than stuffing cash under the mattress). And this is because, people understand their money in the bank is fully liquid (i.e. CB guarante...

3 weeks ago

medialAxisThanks for post that, you've done a good job. I find it difficult finding my way around the BoE's site, TBH."...those in the second paragraph are paying interest to those in the first paragraph..."Not sure that's the best way to view it given what we've learned about how the system works. Also, inte...

3 weeks ago
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