Professor Tim Congdon says that, rather than Government lending billions to the banks, the banks should lend £100 billion to the Government - which could then make payments to businesses. Congdon did not define what sort of payments those might be - but I'd like to see that cash go towards training and staff development, a role that is currently performed by soon-to-be abolished Government agency the Learning and Skills Council and to a lesser extent by the regional development agencies. Congdon points out that most banks are keen to lend to the Government as it has a AAA credit rating.
Also on the show, Danny Gabay has an idea for those who have got into trouble with their mortgages. He recommends that the Government buy back their homes at a price they would fetch at auction - typically a 20 per cent reduction - then rent them back to the occupiers. In time, the occupiers would be offered the chance to buy them back. I wonder if the Homes & Communities Agency will launch similar schemes - they help occupiers stay in their homes and give the Government a cut price asset and revenue stream.
I'm afraid I'm nothing like as confident as Congdon and Gabay that their innovative measures could pull us out of this blasted slump by Easter, or even this year. But, in world where we see far too much backside-covering by economists, I do admire this pair for making a clear forecast of how long it would take for their measures to have an effect.
