Britain in grip of worst ever financial crisis, Bank of England governor fears | Business | The Guar

[alp227]

Source: The Guardian

Sir Mervyn King expressed fears that Britain is in the grip of the world's worst ever financial crisis after the Bank of England announced it was injecting £75bn into the ailing economy.

The Bank's governor said the UK was suffering from a 1930s-style shortage of money and needed a second dose of quantitative easing to boost demand and prevent inflation falling too low.

Shares rose strongly in the City, posting a rise of almost 200 points, after Threadneedle Street responded to growing evidence of a looming double-dip recession and the deepening crisis in the eurozone with a four-month programme of electronic money creation. Dismissing concerns that the action risked adding to inflationary pressure, King said Britain was now facing a different problem from the days when too much money flowing round the economy pushed up the annual cost of living. "There is not enough money. That may seem unfamiliar to people." he told Sky News. "But that's because this is the most serious financial crisis at least since the 1930s, if not ever."

George Osborne agreed to King's request to be able to expand the asset purchase scheme under which the Bank buys government bonds from commercial banks. The chancellor said further steps would be taken to boost growth in his autumn statement next month.

Read more: http://www.guardian.co.uk/business/2011/oct/06/britain-financial-crisis-quantitative-easing

[CJCRANE]

1. "There is not enough money. "

Maybe the banks and corporations are hoarding it.

[FiveGoodMen]

3. I think you're on to something, there!

[Bloke 32]

2. The City Approves

Straight off one knows this is NOT a good thing.

[CJCRANE]

4. Money is just a unit of energy and organization.

If the private sector can't or won't step in to get the economy moving then governments have to.

But yeah, I wonder where this £75 Billion is actually going....

[Nihil]

7. "I wonder where this £75 Billion is actually going..."

> If the private sector can't or won't step in to get the economy moving
> then governments have to.

The private sector won't step in because they know that by sitting on
their money, they'll be given more by the government.

It's a business plan that is based on historical behaviour and has worked
a treat for their profits in the past.

This £75B is merely the next donation from the taxpayer to the board of directors.

[CJCRANE]

9. Good point.

Thinking about it, I later realized the banks' scam is a perfect win/win situation for them.

First they lend TOO MUCH money, crash the economy, and the government steps in to pay off the bad debts.

Then they lend TOO LITTLE, stall the economy, and (as you mentioned) the government gives them even more money.

[xchrom]

5. Dear England: you wanted banks, insurance & financials to be the center pole

Of your economy.

These are essentially thieves that you let run amuck.

NOW you're worried?

Sincerely & feelin bad for ya

Xchrom

[Hotler]

8. +1 n/t

[DeSwiss]

6. rEvolution, because this shit can't be fixed. - K&R n/t

[UpInArms]

10. prevent inflation falling too low

:rofl: