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Friday, December 23, 2011

Sir Mervyn King: 'debt crisis is causing a dangerous 'dependence on central banks'

read more from the telegraph....

"Just a day after the European Central Bank (ECB) provided a record €489bn (£407bn) of cheap loans to banks, the Governor of the Bank of England said the crisis had been made worse by “negative interlinkages”. He added: “Dependence on central banks has risen and signs are intensifying that stressed financial conditions are passing through to the real economy.” Sir Mervyn was speaking in Berlin following a meeting of the European System Risk Board."

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