Monday, January 5, 2009
“The banks” basically are calling Gordon’s bluff, even they don’t believe him !!!
Interest rate cuts alone won’t be enough to provide a New Year’s tonic; Commenting on the choices facing the MPC at its January 2009 meeting next Thursday, David Kern, Chief Economist at the BCC, said: “The rapid worsening in the economic situation and growing fears over rising unemployment reinforce the need for the MPC to continue with aggressive interest rate cuts. To alleviate the most devastating consequences of the serious recession, we urge the MPC to cut rates by a full one per cent on Thursday, to one per cent. A prolonged depression can still be averted if the authorities adopt forceful measures. But interest rate cuts, though important, are no longer adequate on their own. ..."