UK manufacturing continues to struggle

Thrugelmir

worldtraveller wrote: »

largely through QE, which basically hasn't worked.

QE was to provide liquidity to stop the banking system collapsing. While enabling the banks the breathing space to start deleveraging their balance sheets.

So it has worked. As it averted a melt down of one the UK's major economic drivers. UK based banks now have some of the strongest capital ratios globally. Not necessarily highly profitable currently, but able to withstand some severe body blows without flinching. Such as the PPI fiasco.

worldtraveller

Thrugelmir wrote: »

QE was to provide liquidity to stop the banking system collapsing. While enabling the banks the breathing space to start deleveraging their balance sheets.

So it has worked. As it averted a melt down of one the UK's major economic drivers. UK based banks now have some of the strongest capital ratios globally. Not necessarily highly profitable currently, but able to withstand some severe body blows without flinching. Such as the PPI fiasco.

The major reason for QE in the UK was to get financial institutions to increase lending to non-financial companies & personal customers and in that respect it hasn't worked as intended, or at least not to the extent that was intended. That surely is why the BOE are likely, IMHO, to implement further QE later this year, or early next. I certainly agree that one of the propitious effects has indeed been to increase the security of the banks though.

Conrad

worldtraveller wrote: »

The major reason for QE in the UK was to get financial institutions to increase lending to non-financial companies & personal customers and in that respect it hasn't worked as intended,

It was never going to lead to meaningfully more lending as on one shoulder we have ministers spouting Banks must lend, but on the other shoulder in a feat of un - joined up thinking, we have the FSA saying Banks must build thier capital reserves!

Next time you hear a Minister spouting lending must increase, check the FSA's website and see for yourself why it won't happen.

The FSA put's lending out of the reach of millions of would be home owners, even though statistcally speaking only a tiny minority would ever suffer a repossession.