Enlighten me please. We are in this financial mess because everyone stretched themselves too far. Banks gave 100% mortgages (and even gave people money in their pockets). You could take out excessive numbers of credit cards if you wanted. There were just so many ways to extend your credit that people ended up over-committed and then the money ran out.
So how does the government trying to force banks to increase loans actually help. What is needed is money in the pocket. This is achieved through tax cuts. Increasing lending just increases the long term problem. Cutting VAT means, even if the shops pass it on, that for every £100 spent you save all of £2.50. The public need to feel safer, and that is done by making sure their pockets feel full.
Maybe if Brown spent less time writing to X-Factor contestants then he would have more time to think about trying to get us out of this.