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More on the U.K. "funding for lending" scheme: "The case for a further monetary ease is...

  • Thursday, June 14, 2012, 5:35 PM ET
    More on the U.K. "funding for lending" scheme: "The case for a further monetary ease is growing," says BoE Governor King. The plan he describes sounds like a U.K. version of the LTRO, where banks would receive cheap loans (against a wide range of collateral) with a maturity measured in years. Unlike the EU - where it was assumed the banks would use the funding to buy sovereign debt - U.K. banks will be expected to make loans into the economy. (full speech)
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This news story has 8 comments:

  •  
    There's a reason why they call it a "scheme", if this garbage worked, we'd be 4 years into a RECOVERY already!
    14 Jun 2012, 05:49 PM Reply Like
  •  
    I think it's a typo. They meant "scam".
    14 Jun 2012, 05:53 PM Reply Like
  •  
    My "into dark shadows" deeper concern is that after all participating banks provide "legitimate" collateral to the BOE for the funny money paper.....if something goes wrong and the banks go bust, does the BOE (the Central Bank) then own all the collateral (for which they paid nothing mbut funny money), and can they foreclose on their collateral if they choose. Or can they sell it off to a willing buyer of their choice - perhaps an insider friend - for a song an a dance, thus conveying title to your London estate for a pittance to their brother.
    14 Jun 2012, 05:54 PM Reply Like
  •  
    @WMARKW
    Cool use of the moniker, I think we are F.U.B.A.R. no matter what!
    Just think how wonderful it would have been if we actually had some MEN in charge when all the Greenspan "Micro Managing" blew the free market system up in 2000!

    We would be 12 years into the solution, today we have dirt bag Sir Alan throwing rocks in glass houses and no one calls him on it!

    We stand 12 years into this depression without any leadership at all, worse,
    we now have all the debt and even more debt sure to come, and not a hope in hell we can see any light at the end of the tunnel!

    Oh yeah, that's right!
    There's a light at the end of the tunnel,
    it's a freight train!

    I'm 50 years old,
    I truly feel remorse for what we have done to our children and their children!
    They can never achieve our standard of living,
    Bubble blowin Ben and his QE gun has guaranteed that!
    Jerry
    14 Jun 2012, 06:08 PM Reply Like
  •  
    IDS - Amen to your reply. If you ever get a chance to read Vince Flynn's "Term Limits". It has some interesting alternatives.
    14 Jun 2012, 06:14 PM Reply Like
  •  
    This lending to banks will be done with printed money for sure. Yes baby, grow the money supply.
    14 Jun 2012, 05:57 PM Reply Like
  •  
    Not to be outdone, Reuters is reporting that "sources close to the Obama administration said off the record that they're considering a similar program in the U.S. to jumpstart the recovering recovery. It's called 'Cash for Flunkers,' a program designed to allow the Treasury to float bonds and lend money to banks on the condition that the banks lend the money to anyone who failed to graduate from high school or who started community college and never obtained a degree."
    14 Jun 2012, 06:40 PM Reply Like
  •  
    The sad thing is there is no better solution that won't result in riots in the streets of London.
    14 Jun 2012, 07:20 PM Reply Like
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