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Printing money...will it work
12th March 2009
Quantative easing is just another new idea for hedge funds
Could it be true that the QE, or printing money as it really is, will just become a another hugely short term success story for bright thinking hedge funds managers. It appears hedge fund managers are buying gilts from the UK Debt Management Office (DMO) http://www.dmo.gov.uk/ and then selling them back to the government in the 'reverse auctons' making a goodly little earner on the way!
The Bank of England have actually said they are happy for this to happen as it might get the cash into the system quicker than the bigger banks who will just hoard the money to strengthen balance sheets. Surely the Government should be forcing the banks, who they now own, to liquidate all their gilts and government bonds soonest?
The bank of England have also said that the details of organisations and istitutions who trade in QE gilts will be kept a secret. Is this legal? As we the banks are in many cases owned by us?
History says the Government are at least repeating all the changes carried out in past recessions. When they have used all these up, perhaps they should invite the really bright guys in from the hedge funds to think up some new ideas?
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2009 predictions , blog , Credit Crunch , Greenfield Strategic Marketing Consultants , KING , VAT
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