Bank Of England Says "worst Is Over" - It's Up From Here, Reports Thurs F T

[Injin]

I haven't really thought that much about it. But the last quarter has been all about the carrot, and the BoE is nobody's bitch just yet - so it seems likely to me that if the Mexican standoff doesn't respond by transmogrifying into a sink-or-swim, that they'll use the stick next.

So the implicit question is - just what sticks do pissed-off reserves have, exactly? Specifically, instruments which can be applied to the truly recalcitrant (banks hoarding capital) without harming the weak (those currently selling the Issue outside Aunty Merv's hock-ya-plums-off shop like good ol' Vern, in an attempt to get their busking gear back).

Unfortunately, this end is still opaque to me. I'm interested, I'm looking, but it ain't my back yard. I can see why rate-setting tools might not qualify, so I think they're out. Ditto on-market operations - this really would get them in poo both with Trichet and the EC in general on anti-competative grounds if used in a targetted fashion.

So what's left? I'm not sure. I have an uncanny suspicion that Extradry Martini might, if he's still in the wings (perhaps we'll see one of his uncannily prescient posts nearer the time in question). I'm hopeful that someone else might, too. If we can float some ideas about just what[ is possible without removing any ideas (even the crackpot ones) from the selection pool, then we can start thinking through what is probable.

And just maybe I can help with that.

A tax announced on certain level 3 type assets, dated at some point in the near future?

[REP013]

/snip/

PM, thanks.

I look forward to more on this. I'm sure there are a few posters who could contribute to likely scenarios alas I doubt I'm one of them.

[Its time to buy]

Not reading the whole thread - the worst IS NOT OVER

Wallstreet are comming out with the same Bull.

Last call for the wealth transfers comming soon - dont be sucked in.