The Chancellor announces his bank bailout plan, but has no idea how much money will be needed to stave off collapse of the sector and the economy: more.
The Telegraph commentator Liam Halligan argues that the rescue has failed, that banks must fully disclose their liabilities and that losses must be written off: more.
Ambrose Evans Pritchard calls for a “Biblical debt jubilee” as possibly the only answer, recognizing that creditors will not like it: more.
John Redwood MP calls for a cut in taxpayers’ risks and receives a lucid reply suggesting that US$54.6 trillion of credit default swaps — and few know what these are[1] — will have dire consequences: more.
On ConservativeHome, Andrew Lilico argues that neither loans nor recapitalisation nor underwriting will correct matters since many activities of the sector are finished as profit-making exercises. He calls for radical restructuring. More.
And rounding off calls for radically different action, the Libertarian Alliance says simply, “Let failed banks fail”: more.
Meanwhile, David Cameron strengthens his economic team by bringing back the man who handed over a strong economy and sound public finances, Ken Clarke: more.
Tags: Banking, CDS, economics, Finance, Market Intervention
