U.K.


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Waiting to see if Brown gets any credit for his fiscal policies which in fact are responsible for stopping the slide.

As in the US, monetary policy has been contractionary with lower rates hurting demand from savers and borrowers gaining
little or nothing, and lenders replenishing lost reserves.

And QE per se does nothing apart from altering the term structure of rates and modestly reducing bank earnings.

  • British house prices rise again in August
  • City regulator seeks to deflate financial sector with global tax
  • U.K. Retail Sales Index Falls, Outlook Improves, CBI Says
  • U.K. Business Investment Fell Most Since 1985 in Second Quarter
  • U.K. Two-Year Notes Rise as Chinese Curbs Boost Safety Demand
  • U.K. Population Hits 61.4 Mln; Immigration Eases


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5 Responses to U.K.

  1. malcolm says:

    It is a shame of Mr. George Bush and Mr. Tony Blair to come up again to talk about financial crisis in their country’s let’s talk about U.S the financial crisis happened long before Obama administration what have Mr. George Bush (Tony Blair) do to prevent this? What U.S or U.K need now is solution of the crisis due to the negligent of Mr. George Bush (Tony Blair) administration to identify the financial problem as a whole in the banking system or lack of centre banking commitment during Mr. George Bush (Tony Blair) administration.
    Basically Obama (Gordon Brown) now are accumulating the fragmented financial parcel that have damaged by Mr. George Bush (Tony Blair) administration should previous administration come out to apologies to the societies of U.S or U.K? Mr. George Bush (Tony Blair) should ask himself this question. Should the previous administration do not know anything that’s going to happen in the financial market or they know it and just let it sink?
    The centre bank should know the whole banking liabilities in the market of U.S or U.K and should these liabilities pull down the whole financial system of U.S or U.K? The centre bank not only has taken care of the dollar (Pound) value but the stakeholder well being as a whole and should centre bank but up the alarm when some of the banks (especially the bigger bank in the U.S or U.K) have accumulated it liabilities’ and endanger the whole financial system?
    U.S or U.K should re-evaluate it financial system and make all bank liabilities transparent so that the government or the centre bank can take action before the financial meltdown and this is the same applied to the U.K. (eat what you can chew but not chew what you can eat)
    In my personal view it is a shame of the bank paying bonuses to their employee as this time of crisis there are already consider lucky to have a job and got the food on the table, no doubt some employee are good but they should bare the same consequences just imaging the bank is going bankrupt the U.S or U.K government are using the social money to help the bank yet the bank use the money for personal gain first? The bank should plan and make a confident return of the social money to the government as it is easy for the bank just take the government money maybe just in within one or two months but when the bank (s) is or are going to return is money to the government? 2 year? 10years? 100 years? Create another 100 billion debts again before building up the confident to the society of U.S or U.K?
    I believe the society of U.S or U.K not going to dig some hole and buried their money or gold but what bank do to give back the confident to the society of U.S for the banking system?(same as to the U.K)

    Reply

  2. RSG says:

    They think it will encourage banks to lend more…seems more like a means to tax already questionable balance sheets.

    Reply

    Scott Fullwiler Reply:

    RSG . . . agree, and FYI, this might be of interest . .

    http://neweconomicperspectives.blogspot.com/2009/07/why-negative-nominal-interest-rates.html

    Reply

  3. Warren Mosler says:

    thanks, that will fix what ails them for sure…

    Reply

  4. RSG says:

    Warren, read in the ft this morning that swedish central bank went to a negative interest rate on deposits…-0.25% to be precise.

    Reply

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