Quantitative easing is the best solution to salvage the UK economy
Quantitative easing is the best solution to salvage the UK economy – but the Government’s “dribs and drabs” approach is too slow, according to property website www.look4aproperty.com.
Aaron Turner
CEO Aaron Turner said: “Money needs to be put into the economy in much larger amounts and not in dribs and drabs of £2billion at a time. “It’s totally inadequate. I would say the Government needs to inject at least £300-£400billion and in much larger blocks to really get the economy moving – the £75billion they have pledged might not be enough to be noticed.”
Turner welcomed the new lending from banks including Lloyds, RBS and Northern Rock – but said too much of this money would be going to business and not enough to ordinary home owners. ”
For example, out of the Lloyds announcement only £2billion of lending will go into mortgages – it is mostly going to business,” he said. “This will help because it could slow job losses and aid British businesses – but the amount of money is still too small and more money needs to go into the housing market. ”
People need to remortgage and buy properties – and once they can do that they will start buying on the high street again. ”
Whether quantitative easing works is a matter of time but I would say it will still take 18 months to two years for the country to get back on its feet – and even then, we won’t see 125% mortgages again, which is not a bad thing.”
