Posted on 06/15/2012 11:45:08 AM PDT by Errant
The Bank of England announced this afternoon that it would attempt to flood banks with cheap cash in order to stave off tensions in the interbank credit markets, according to Dow Jones.
This report followed rumors of coordinated central bank action to bolster liquidity across the world, however the BOE's plan appears to be much more U.K.-centric.
(Excerpt) Read more at businessinsider.com ...
US and European regulators are essentially forcing banks to buy up their own government's debt—a move that could end up making the debt crisis even worse, a Citigroup analysis says.
Regulators are allowing banks to escape counting their country's debt against capital requirements and loosening other rules to create a steady market for government bonds, the study says.
Anxious to see Nigel Farage’s take on this. Boy ! It’s gonna be sumpin’
Doesn't take a genius; historically many road maps exist of where we're headed. It's just a matter of time now. The increasing uptick in government spending indicates we're fast approaching the proverbial brick wall.
Our last exit was way back when the Republican congress folded on raising the debt ceiling.
Tighten your seat belt!
June 20, the first money auction allows banks to get a loan at .25% instead of .5% rate, don’t banks still have to have customers willing to get a loan to make a profit? And what of the bank’s bond holders vs depositors?
You’ve got that right! :) Nigel Farage - 2012!!
Or in con-man’s terms, we just sold you all these IOU’s for your cash, and now we’ll loan you back the cash at a lesser rate then you could normally get a loan. How’s a bank supposed to profit? As for the bank’s bond holders vs depositors, I read somewhere it’s depositors who will get paid first.
The way it works, is the banks borrow money from the government's right pocket, then loan it back to the government's left pocket, at a small but guaranteed profit of course.
Doing it this way, keeps everything above board and makes everyone happy. If something did go arye, not that it ever could - mind you, but it it did, then there's you to make it all good with your full faith and taxes credit!
"So what will today's £140 billion do for lending?
NOTHING! Because the money is not for the UK economy but for Britain's bankrupt zombie banks to be kept on life support as a consequence of the counter party losses they will face following a Grexit. At the end of the day the bankrupt banks NEVER pay for their loses, YOU the tax payers are expected to!"
It's easy to underestimate how gullible the general public is and the willingness of government and their central banks to take advantage.
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