Hmmm. Provide cheap money to banks? What a novel idea! Why didn't anyone suggest it before?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.
Oh yes, suddenly everybody will be convinced that this will solve the problem...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.
Yep, like all the money they've already printed was supposed to, but hasn't.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.
"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.
Well, that's pretty clear. They are going to keep on printing money ad infinitum.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.
