Mervyn King opens the door to quantitative easing
Mervyn King has this evening opened the door to a last resort "quantitative easing" to try and solve the riddle of the falling UK economy. This method involves printing more and more money to finance rescue packages, the purchase of bonds and other such investments in an attempt to pump money back into the economy. As interest rates move towards 0% there are fewer and fewer options open to the government and the Bank of England and many experts feel a quantitative easing is just a matter of time.
Despite a number of rescue packages and pumping hundreds of billions of pounds into the system there has been little movement on the upside in the UK economy. Indeed the banking sector has come under renewed pressure this evening amid calls for a number of major UK banks to be nationalised. Once thought of as the safest sector on the UK stock market the banking sector has been annihilated over the last 12 months and the pain does not seem to be over.
Mervyn King has been fairly quiet for some time amid suggestions that he has been working on this quantitative easing strategy ready to jump into action as and when required. Many feel that moment is not too far away.......
Share this..
Related stories
Retails Sales Growth In The UK Has Stalled
News that like for like retail sales growth in July fell by 0.9% was something which was not totally unexpected by the market. This latest fall is the fourth in the last five months and is a trend which is set to continue for the foreseeable future.
It is not just the affect of falling sales which is hitting the high street but also the increase in underlying costs. This double...
IMF suggests that the UK economy is weakest of the developed world
A recent IMF survey suggests that the UK economy is the weakest of the developed world and the UK recovery period will be long and hard. Like so many financial institutions of late, the IMF has centred upon the weak position of the public purse where debt has grown to £600 billion and is set to crash through the £1 trillion mark over the next three years. The Labour Party claims yesterday would...
Read MoreAre we poised is to see the third leg of the credit crunch crisis?
After the initial credit crunch hit the US and began to spread around the world there was a period when many observers believed concerns had been overdone and the markets and economies around the world would return to "normal". However, we then saw a second leg which impacted upon the worldwide financial sector, stock markets, government budgets and other vital elements of "everyday life". However...
Read MoreEven the aristocracy are suffering!
Yesterday there was an auction at Christie's which was something out of the norm and involved Princess Michael of Kent and an array of other royal family members. All in all, the Duke of Kent, Princess Alexandra, Prince Michael and Princess Michael of Kent auctioned 300 heirlooms from the Duke's late parent's estate to try and replenish their own personal finances. So how did they do? The 300 i...
Read MoreHouse sales match peak of 1980s boom
Britain's property sales reached their highest number in 2006/07 since 1988, the year in which the property market took a nose dive, new figures show.Statistics from HM Revenue and Customs (HMRC) show that a total of 1,859,000 flats and houses were sold in the UK in 2006/07.In 1988 the number of homes sold in just England and Wales stood at a record level of 2,148,000. That figure dropped by more...
Read More