Two stories from the BBC website this morning point to the UK and European banking system nearer meltdown. The Bank of England "is set to offer lenders an extra £10bn in funds as it tries to limit the impact of a global credit crunch and high borrowing costs.
It is one of five central banks that have pledged to inject $100bn (£49bn) of emergency cash into money markets." The European Central Bank "is to offer banks unlimited funds at a below-market rate, in a cash injection to counter the impact of the global credit crunch.
It is one of five central banks that have pledged to inject billions in emergency cash into money markets."
The problem is confidence and the Central Banks are not raising confidence with these measures. I forsee much more serious trouble ahead.
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