"Steve Keen talks about the money creation process in the second half, and how the assumption of 99.9% of neoclassical economics that savings and debt cancel each other out in an economy is completely misguided as it is ignorant of the fact that nearly all new money is created as debt by private banks in modern economies." http://www.positivemoney.org.uk/2011/12 ... er-report/

"Steve Keen talks about the money creation process in the second half, and how the assumption of 99.9% of neoclassical economics that savings and debt cancel each other out in an economy is completely misguided as it is ignorant of the fact that nearly all new money is created as debt by private banks in modern economies." http://www.positivemoney.org.uk/2011/12 ... er-report/

An important point to remember that the principle of fractional reserve banking (where, say, £10 is lent for every £1 that is deposited) is entirely dependent on people choosing to save money. Given that interest rates have been in a state of flatline for some years now it's hard to see how banks (excluding those based in Asia) can be in a position to lend money. Although there seems no shortage of offers from so-called "debt consolidation" companies to people struggling to pay the bills.

On a personal note, even though I was offered plenty of credit prior to the sub-prime debacle it simply doesn't compare to the mountain of credit card deals I've received since.

What is a credit card "deal"!?

Incentives. A matter of perspective, I suppose. But they seem to be falling over themselves lately to get my business. I guess the plan is instead of throwing credit at everyone and his dog (pre-subprime) they're all now competing to milk those remaining who they still think have a few pennies left under the mattress.

Burn the top one, then one each clockwise round the table starting on your left.

They've been doing it this way for years now. Credit check is a test of willingness to toss the house keys in.

Capital One are a good example. they currently have this thing on Facebook and elsewhere, click on this and we'll tell you in 60 seconds if your credit card is approved. they bumf then says the interest rate is something like 39% which given that Bank rate is about a millionth of a percent seems like decent business if anyone falls for it.

I have no clue how many they issue, but it must surely be a right shedload, as else why would they spend all the dosh on advertising it?

Precisely! There seems a strong positive correlation between businesses who offer "deals" and rip off merchants. Mobile 'phone charges spring to mind too.