Monday, 15 April 2013

The Magic of 9 (An Update)

Back in January I stated that “it started with the banks and it must end with the banks” in my blog ‘The Magic of 9’. (http://stevesmithlive.blogspot.co.uk/2013/01/the-magic-of-9.html) Well, since then there has been very little evidence to change that opinion. In fact, the situation has been made worse……
 
Enter the (soon to be outgoing) Govenor of The Bank of England, Mervyn King. His last throw of the dice could actually be the most dramatic to our economic prosperity / recovery……
 
In short, The Bank of England is strongly recommending that UK banks must raise a total of £25 billion urgently to help guard against and fund predicted losses / fines of around £50 billion over the next 3 years and avoid the need for further bailout. Money that could have been lent out to the Private Sector to fund business growth leading to job creation rather than now sat stagnant to pay for the previous greed that is to come back and bite hard on the banking arse.     
 
Even more reason for the banks not to lend and further delays ‘The Magic of 9’.
 
The economic constipation continues.

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