London – Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.
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Economists said the Bank’s decision to resume its quantitative easing [QE], or asset purchase programme, showed it was increasingly fearful for the economy, and predicted more such moves ahead.
Sir Mervyn said the Bank had been driven by growing signs of a global economic disaster.
“This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever. We’re having to deal with very unusual circumstances, but to act calmly to this and to do the right thing.”
Announcing its decision, the Bank said that the eurozone debt crisis was creating “severe strains in bank funding markets and financial markets”.
Just you wait until China’s realestate bubble bursts, the gold bubble bursts AND Greece’s default sets off a contagion throughout Europe and the world…..
Just this week several smaller Chinese banks had a run and were closed down.
The vaults are cracking, the bubble’s blown, and the goose’s golden egg was traded in for a paper thin slice of a pie in the sky. Welcome to the new reality everyone! There’s no where to run anymore accept for the Beis HaMedrash.
A Gut Yohr Rabbosei!
Talk until you turn blue in the face trying to figure things out. Proven (past) methods are not working. There is major trouble looming ahead. Finally and hopefully, compassion and kindness will be the rule of law in our communities.