Following on from Wednesday’s blog this week the ECB pumped in an unprecedented 349bn Euros into the money markets yesterday.

Trumpo only requested £50 bn on Wednesday - it must be Christmas.

The money received 390 bids for the funding, which was offered at a rate of just 4.21%.

Trumpo can see a little light at the end of the tunnel, but I am going to have a rant anyway. Here goes…

One of the main issues we currently have is that the banks and finance houses have clients who want to borrow, but the main clearing banks and building societies have had to tighten their credit scores to such a level, under stringent FSA “responsible lending” directives, that the consumers who had previously been able to borrow at a fair and reasonable rate, are now forced running to ridiculously high interest rate doorstep lenders, the largest of which Provident, reported a dramatic upturn in business to record levels this week. Good for Provident shareholders, bad for the consumer.

As Trumpo writes this blog, we have a dual class lending and borrowing system in place - it really is like “Upstairs Downstairs”. It may look like an opportunity for lenders to hike rates and boost margins, at the expense of the people the regulators are supposed to protect - the consumer, or them downstairs. But Trumpo’s opinion is that it’s a result of the current regulatory framework.

On the one hand the regulator is saying to the high street banks, you must lend responsibly and if people can’t afford it then you shouldn’t lend to them, however we have £1.4 trillion currently lent to these now blackballed consumers, who by the way have had to stomach 5 interest rate rizes in the last twelve months.

If these now deemed irresponsible borrowers need a new car, kitchen or perish the thought actually move house, they are penalised to such a dramatic level because the banks tweeked the “responsible lending” computer system to only allow people to borrow who don’t need it and if these preferred borrowers want to borrow, the rates are now sometimes less than they can receive in their savings accounts!

Today’s taxpayer, who in most instances can’t actually afford to save because of the increased taxes and cost of must have fuels and foods, are having their hard earned taxes, lent at a low “Upstairs” rate to Northern Rock Bank at the current level of £2,000 per tax payer and rising. The “Downstairs” taxpayers money is being used to prop up other peoples savings - am I missing something here or is this government and regulator taking the preverbial?

Now, where is Jeeves with my tea?

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