The recession is deeper than we thought, the central bankers say.
No shit? Gee, these guys are at the cutting edge. I wonder how they found out – perhaps they saw the unemployment lines…
Their solution is simple – keep interest rates at a record low and erm, print more money.
How much, you ask?
Oh, say another fifty billion pounds…
Quantitative easing. It sounds clever, but that doesn’t butter parsnips.
Why do I get the feeling that the only thing QE is stimulating is the profits of the banks?
Okay, so the bailed-out banks have reported losses – but things are going great for the remaining banks (their investment arms at least!)
As for the real-world stimulus mesures, like the car scrapage scheme and the reduction of value-added tax, these will not be extended.
Why do I get the feeling quantitative easing will be given another go?