A further £500 billion of taxpayers’ money is to be pumped into the banks through a slew of initiatives to be announced this week.
The Bank of England will launch its so-called “quantitative-easing” plan, in which at least £100 billion will be spent on buying bonds and gilts from Britain’s banks. The final figure could climb much higher, according to economists.
The government will also launch its controversial asset-protection scheme, which is expected to protect at least £400 billion of “toxic” loans with a taxpayers’ guarantee.
Meanwhile the Prime Minister is thinking about banning 100% mortgages. Nothing like closing the stable door after the horse has bolted. And, anyway, where could you get a 100% mortgage these days?