Thursday, September 13, 2007
Two and counting!
After Victoria, now the turn of Northern Rock... but wasn't it different here in the UK? BoE can bail out banks but it is unlikely will slash rates to ease the credit conditions. Too many implications for inflation, currency etc. Please do not forget that this credit crunch is due to the ongoing right-pricing of risk. This has nothing to do where you set the "risk-free" BoE base rate, which s got to do purely with inflation.