If borrowing is becoming easier why the we need to extend the quantitative easing program?
There have been some very different and very confusing headlines in the weekend press regarding the UK financial situation and the assistance which the Bank of England will offer in the future. On one hand the Bank of England has made it known that it believes that finance is more readily available to the corporate market than it has been for some time, while on the other there is potentially an extension of the quantitative easing program in the pipeline. So what should we believe?
Yet again we have different comments and different strategies emanating from the Bank of England which have confused many investors and many researchers. If finance is becoming easier to obtain why do we need to potentially extend the quantitative easing program and what benefit would this bring to the UK economy in the medium term?
It will be interesting to see which strategy the Bank of England takes on after the dust settles on 2009 and we begin to look forward to 2010. However, if there is one thing which UK investors dislike more than anything it is confusion and confusing comments from those in authority. We need to seek clarity at this point in the economic cycle and we need to see all parties "singing from the same hymn sheet".
Share this..
Related stories
Lookers issue downbeat statement on the UK car industry
Despite yesterday's announcement from Pendragon that the company believes the mountain of unsold cars in the UK is nearly clear, fellow car dealership Lookers has today issued a statement which is a little more conservative to say the least.
While the company recognises that the UK government's £300 million car scrappage scheme has gone a long way to injecting interest into the sec...
What is a Tobin tax?
After today's comments by the chairman of the FSA (Financial Services Authority) Lord Turner, many people are now wondering exactly what a Tobin tax is. Named after the economist James Tobin this particular style of tax was first discussed in 1971 in relation to implementing a tax charge on all cross-border currency transactions in order to reduce short-term speculation by increasing short-term co...
Read MoreMPs expenses back under the spotlight
There are rumours and counter rumour circulating around the House of Commons today with regards to MPs expenses and the potential for the infamous second home allowance to be withdrawn. Sir Christopher Kelly, the head of the powerful committee on standards in public life, is rumoured to be about to suggest that the second home allowance is withdrawn and MPs simply pay rent on properties they have...
Read MoreThe history of the Financial Services Authority
The Financial Services Authority (FSA) has been the leading regulator in the UK financial markets sometime although over the last two years the FSA has become embroiled in a number of controversies with the government, the banking industry and the business arena as a whole. Officially the FSA is independent of the government of the day but the fact that the UK Treasury appoints the board of the FS...
Read MoreWould a property tax affect property prices?
As the debate regarding the replacement of the council tax system with a property tax system goes on, there is growing anger and concern that any such move could have a dramatic impact on the cost of property in Scotland. While it has to be appreciated that the many parties discussing the options are looking from different points of view, the SNP has forecast that if a property tax was introduced...
Read More