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http://www.bbc.co.uk/news/business-18448636

The Bank of England will launch two new stimulus packages in response to the worsening economic outlook, governor Sir Mervyn King has said.

Together with the government, it will provide billions of pounds of cheap credit to banks to lend to companies.

Hmmm. Provide cheap money to banks? What a novel idea! Why didn't anyone suggest it before?

It will also offer banks access to short-term money to deal with "exceptional market stresses".

Chancellor George Osborne said the measures would "inject confidence" into the financial system.

Oh yes, suddenly everybody will be convinced that this will solve the problem...

They would also "support the flow of credit to where it is needed in the real economy", Mr Osborne said in his annual Mansion House speech.

Yep, like all the money they've already printed was supposed to, but hasn't.

"We are not powerless in the face of the eurozone debt storm. Together we can deploy new firepower to defend our economy from the crisis on our doorstep."

Oh yes you are.

Further details of the short-term liquidity scheme would be announced on Friday, he said.

"I want to make it clear that the Bank, through its discount window and other facilities, will provide banks with whatever liquidity they require given the prospect of turbulence ahead.

Well, that's pretty clear. They are going to keep on printing money ad infinitum.

Why in the world can't they lend straight to the firms?? Or set up an entity that can?

RenewableCandy wrote:Why in the world can't they lend straight to the firms?? Or set up an entity that can?

Because this is all about trying to protect the banks.

Snail wrote:

RenewableCandy wrote:Why in the world can't they lend straight to the firms?? Or set up an entity that can?

Because this is all about trying to protect the banks.

+1 - and trying to keep the Ponzi finance scheme alive a little longer so the *ankers can do more looting

Yes, there's no other explanation is there? Pathetic, isn't it?

RenewableCandy wrote: Pathetic, isn't it?

Yes

RenewableCandy wrote:Why in the world can't they lend straight to the firms?? Or set up an entity that can?

because this was never about saving the peasants' sorry arses (that'll be me and you) and was always about protecting and maintaining the current power structures (that'll be the banking elites).

RenewableCandy wrote:Why in the world can't they lend straight to the firms?? Or set up an entity that can?

My brother has been involved in attempts to set up an organisation to do just that. It's got nowhere. Time for automatic weapons I think

http://www.independent.co.uk/news/busin ... 52099.html

My irony-meter is about to explode. According to Mr Osborne, the purpose of this new measure is to "inject confidence into the financial system." How does "hitting the panic button" inject confidence?



It was even described by on Newsnight as "inflating the airbag before the crash", which is a rather good metaphor for the precise point in the proceedings we have reached.

"How does hitting the panic button induce confidence?"

The same way last weekend's measures with Spain induced confidence (for about five minutes that is!)

I think less panic button is needed and more reset button.

Together with loading up a new operating system.

Trying to perpetuate the existing state of affairs is no good, though whether it is just a matter of cancelling out debts, inflation and whatnot in response to the fact that the money in the system doesn't represent real value and/or the convoluted nature of the system and the financial isntruments therein needs to be simplified, is dobubtful- isn't it the entire system of values and assumptions that is at stake?

Of course I'm preaching to the converted here, I suppose.

I just cannot see how people think that by investing their money in the right way ought to magically make it bigger with no effort on their part (or indeed anyone's part), or that this is necessarily a good thing. Why not be satisfied with what you have?

(That said there's me, state benefits, and needing a kick up the arse to try harder to get a job... is that any better mewonders...)

The supply of cheap money to Greece and Spain at 0.5% was the cause of their problems. I cant see how this is going to solve ours

Why would buinesses need money to invest, when there's no demand?

Millions of people sat waiting for the end credits, and the curtains to close.

More tax payers money down the drain.

At this rate the only industry celebrating today will be the makers of printing presses

The system appears to be spinning in on itself faster and faster now.

RenewableCandy wrote:Why in the world can't they lend straight to the firms?? Or set up an entity that can?

Entities that can lend (to firms or anyone) are called banks. The UK has a huge banking sector, why would we need any more


Peter.