Casino Bar Shall Remain Open: ECB “On Standby” Promising Liquidity for Greek Election Fallout; Bank of England Launches Two New Stimulus Packages
Courtesy of Mish.
The message of the day is “damn the consequences, the casino bar shall remain open”, whatever it takes, no matter the consequences to taxpayers who will be responsible for the bar tab.
Bank of England Launches Two New Stimulus Packages
The BBC reports Bank shares jump on new business support plans
Bank shares have jumped in the wake of plans from the Bank of England to launch two new stimulus packages.
The Bank of England’s announcement of the plans on Thursday comes in response to the worsening economic outlook, governor Sir Mervyn King [Chairman of BOE] has said.
Together with the government, it will provide billions of pounds of cheap credit to banks to lend to companies.
Banks will also have access to short-term money to deal with “exceptional market stresses”. The chancellor said the measures would “inject confidence”.
But Labour’s shadow chancellor Ed Balls said the plans did “not go far enough”.
Rather than further QE to stimulate the economy, the Bank will now offer cheap loans to banks on the basis that they increase lending.
“Today’s exceptional circumstances create a case for a temporary bank funding scheme to bridge to calmer times,” Sir Mervyn said.
“The Bank and the Treasury are working together on a ‘funding for lending’ scheme that would provide funding to banks for an extended period of several years, at rates below current market rates and linked to the performance of banks in sustaining or expanding their lending to the UK non-financial sector during the present period of heightened uncertainty.”
Clearly Ed Balls is not satisfied with QE, with below market rates loans to banks for an extended period of several years, or anything else the BOE has done….