Friday, May 08, 2009
Surprise £50bn cash injection is attempt to avert new phase of credit crunch
The Guardian: Bank of England braced for third wave of financial crisis
On Thursday the Bank surprised the City by announcing that it would pump an extra £50bn of new money into the economy despite recent stockmarket rallies.
Now the Guardian has learned that this increase in quantitative easing was driven by fears in Threadneedle Street that the credit crunch is still sucking the life out of the British economy and the banking sector remains in deep trouble.
Richard Lambert, director general of the CBI, said: "The fact is that for all the injections of taxpayers' money, the credit markets are still not working properly."
Posted by devo @ 11:53 PM (607 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. charlie brooker said...
As you can see, my young apprentice, your friends have failed. Now witness the firepower of this fully armed and operational battle station.
Fire at will,Commander.
2. icarus said...
....but the Fed reported that US banks were OK. Or was that just a PR stunt?
3. Clockslinger said...
Am I right in thinking the fed moved the goalposts a little (abandoning mark to market valuations and now their "stress testing" criteria) ? So maybe they have made it OK!