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Debate House Prices


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Trying to build on shaky foundations

According to Mervyn King, the £75bn QE announced yesterday will help the city far more than small businesses. He doesn't believe that it is he job of the Bank of England to support small businesses - it is the job of the banks (and that is something that the banks are failing to do).

SMEs in this country employ over 50% of the working population, and even in the boom years total annual lending to small businesses was only around a tenth of the £75bn new money to be printed.

Are we in danger of spending all of our money on the roof when the foundations of our economy are about to give way?
"When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson

Comments

  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I'm not sure were in danger of it. I think we have already done it. Yesterday we just dragged in more labour to work on the roof.

    As you say, he basically stated this would not get into the economy, though tried to suggest it would. At least he was partly honest. This is all about maintaining the city. Nothing else. He wrote the savers off just after he suggested it's not his job to help other business.
  • As you say, he basically stated this would not get into the economy, though tried to suggest it would.
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