The Bank of England is braced for third wave of financial crisis/The Guardian: "the Bank surprised the City by announcing that it would pump an extra £50bn of new money into the economy despite recent stockmarket rallies.
Now the Guardian has learned that this increase in quantitative easing was driven by fears in Threadneedle Street that the credit crunch is still sucking the life out of the British economy and the banking sector remains in deep trouble.
The new mood of caution chimes with comments from business leaders yesterday, who warned that apparent green shoots in the economy had shallow roots."
Is is £1.3 trillion that the Government has already poured in to the unreal economy of the financial markets? Something like that. And a few millions into the real economy, much of that into the motor car industry. PFI projects are still going ahead, in defiance of all reason and logic.
It is going to get worse before it gets better. The way to get it better is to put money into the green sector of the economy, while ringfencing off the insane shadow economy of the derivative markets.
Green economics is real economics.