The Government has made it’s intentions clear over the weekend about helping out small businesses and consumers through this liquidity crisis by urging banks to lend money, and to go easy on customers with short term cash flow problems.Very commendable and sincere……but it’s already becoming obvious that what the Government wants to see happening to protect the general economy isn’t always happening! For instance, the banks are appearing to be even more agressive with homeowners behind with mortgage payments, with Northern Rock being accused of being the most eager to foreclose.
There were small businessmen coming forward over the weekend claiming that banks were charging greater administration fees for arranging finance, thus hurting already cash struck customers still further.
It’s more evidence to suggest that its going to take some time to get everything and everyone moving in the same direction. Governments might think they’re in charge, but they’re often not when political intentions clash with hard headed business pragmatism.

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