Wednesday, 12 December 2007
Amongst the stories of genetically modified mice not afraid of cats is the news about the world's major central banks getting together to throw a heap of money into the global economy. Its supposed to stabilise interest rates and keep credit liquidity.
I think this is the first time the Fed, BoE and others have worked like this in concert and probably indicates the scale of the problem as a result of the sub-prime lending and oil price inflation. Another way to put it is that banks are trusting one another less because of the amount of dodgy loans in the system and now intervention is being used to try to fix it.
Somewhere there must still be a large hole in the global ecomony created by aIl the missing money and I can't help wondering how that hole will ultimately get filled.
britney's massive hole