About Us tem vaca na moita tem vaca na moita Of All Categories Academics, Arts, Autos, World & Business, World News, Business & Finances, Consulting, Entrepreneurship, Politics, Career & Jobs, Computers, Education & Training, Entertainment, Celebrities, Movies, Music Television, Food & Drink, Games, Gaming News, Nintendo Wii,PC Games, PlayStation Xbox 360, Health & Fitness, Home & Garden, Humor, Law & Legal, Lifestyle, Fashion, Marketing, SEO, Mobile, Personal, Parenting, Relationships, Pets, Photos, Real Estate, Recreation & Sport, Religion, Science, Shopping, Sports, Baseball, Basketball, Extreme, Football, Golf, Hockey, Motorsport, Soccer, Tennis, Technology, Tech News, Apple, Blogging, Design, Gadgets, Hardware, Internet, Linux/Unix, Microsoft, Programming, Security, Software, Web 2.0, Wireless, Web Hosting, Travel, Video Blogs, Writing, Wallpaper.

Friday, December 2, 2011

King warns of 'spiral' into systemic economic crisis and... weakened banks

The governor of the Bank of England, Sir Mervyn King, offered some disturbing and silly remarks to the public today.

Eurozone woes have created “an exceptionally threatening environment” as falling government bond prices, eroding confidence and asset fire sales threaten to “spiral” into a systemic financial crisis, the governor of the Bank of England has warned... King urged the UK financial system to continue building up capital against an “extraordinarily serious” situation it had not created and could not solve.

“The crisis in the euro area is one of solvency not liquidity. And the interconnectedness of major banks means the banking systems and economies around the world are all affected. Only the governments directly involved can find a way out of this crisis,” he said.

Underscoring their concern, Sir Mervyn and Hector Sants, head of the Financial Services Authority, revealed that the watchdog was allowing UK banks to dip into their liquidity buffers when they encountered funding squeezes.

Far be it from me to second-guess a genius like Sir Mervyn, but doesn't alerting the public to potential shortages of liquid capital at retail financial institutions risk, er, bank runs?


No comments:

Post a Comment

Search This Blog

Loading...
Preview on Feedage: tem-vaca-na-moita Add to My Yahoo! Add to Google! Add to AOL! Add to MSN
Subscribe in NewsGator Online Add to Netvibes Subscribe in Pakeflakes Subscribe in Bloglines Add to Alesti RSS Reader
Add to Feedage.com Groups Add to Windows Live iPing-it Add to Feedage RSS Alerts Add To Fwicki
Add to Spoken to You
Entertainment Powered by Mysiterank Dr.5z5 Open Feed Directory Feedage Grade B rated

Blog Archive