Darling has announced that banks must pass on the interest cuts. Interest rates have been cut by a further .25% as predicted; however, Darling said that banks are not always passing on the cuts, who could blame them. With many specialists predicting a housing crash similar to the 1970’s great depression all business are now uptight and simply ‘passing on’ the cuts to the full .25% may help the customer but it wont help the banks. Banks are desperately trying to hold onto the ‘loyal’ or ‘good credit’ customers while shaking away the bad. The problem is there is so much ‘bad debt’ that the only plausible way they can make back their losses is by lending (not going to happen) or by getting better margins on their lending by not passing on the full amount. Darling has the idea just the wrong implementation.

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