Thursday, Dec 27, 2007
Central Banks risk loosing control
Telegraph: Crisis may make 1929 look a 'walk in the park'
Buckets of liquidity are being poured into the North Atlantic banking system with meagre or fleeting effects with many top economists warning that the world's central banks are risking a policy error of epochal proportions. B of E Markets director Paul Tucker states that 'the crisis has moved beyond the collapse of mortgage securities, and is now eating into the bedrock of banking capital'.
Posted by enuii @ 11:07 AM (496 views) Add Comment
2 Comments
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1. handle_it said...
I think this was on here a fews days ago ? I love the comments people have left :o)
2. uncle tom said...
Those who want interest rates dropped seem to believe that doing so will provide a total - or near total - cure.
It won't. The western nations have been living beyond their means, and returning to a sustainable economy is not going to be easy. Cutting IR's will slightly delay - but also sharpen - the crunch.
There's no clever solution, but making taxpayers foot the bill for vast amounts of cheap credit is not a good way forward - especially when you consider the size of the government's budget deficit..