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PRF101

Listed below are comments made by PRF101 between Friday, 19th September 2008 and Friday, 26th June 2009.

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Why banks must be allowed to die 00:31am on 26 Jun 2009 Does anybody know why Peston has completely ignored the most important story of recent days: namely, the Exocet missile that the governor of the Bank of England fired at NuLabour's reckless, scorched-earth fiscal policies? He said that not only is fiscal policy unsustainable now, but also it was unsustainable before the recession began. I would have thought that this was worthy of note by the BBCs business editor. Is it too off-message for the BBC? Safer to stick to bank regulation.
Bank of England unmanned 12:30pm on 25 Sep 2008 Excuse my ignorance, but what does it actually mean when a bank "hoards" its money and doesn't lend. We are not talking about notes and coins here, so these assets must be invested somewhere... where? And how can all banks can be simulataneously short of cash - it's a closed system, is it not?
Also what does it mean exactly when it is said the BoE pumped Xbillion of liquidity into the system? How does it do this and why is the market still short?
I don't want to turn this into an economics class, but these things are banded about and it would be good to know what they mean exactly.
The American way to fail 09:57am on 19 Sep 2008 It seems that the authorities are trying to solve this problem in the usual way of throwing newly minted money at it. By creating inflation it will bail out the banks and other feckless borrowers by expropriating (that is, stealing) the savings of those who try to look after themselves without expecting state handouts.
'Twas ever thus from Roman times to now.
Sell cash buy gold.

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