16 January 2009

The green shoots didn't last very long

Do you think they know what they're doing? The Times reports:
A package of radical measures to get British banks lending more is due to be hammered out at the weekend in an attempt to prevent the recession souring into an even more serious downturn.
Amid a growing sense of urgency, ministers are working on proposals paving the way for fresh capital injections into banks, for relaxation of rules on balance-sheet strength and for government guarantees of toxic assets on bank balance sheets.
Treasury and Bank of England officials are bracing themselves for a hectic weekend as Alistair Darling tries to finalise measures in time for an announcement early next week.
The latest push came as bank shares slumped to lows not seen since the 1980s and as a warning was given by Capital Economics that UK banks would be forced to cut lending to householders and businesses by £400 billion in the next few years unless action was taken.

No, nor do I. Just flailing about - because being seen to do something, anything, is better than not.

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