Economics Weekly

A few months ago, the financial markets were in turmoil, but since the collapse of Lehman Brothers in mid September the situation has actually turned much worse.

Financial and economic crisis getting worse

 

A few months ago, the financial markets were in turmoil, but since the collapse of Lehman Brothers in mid September the situation has actually turned much worse. As the Bank of England said in the statement accompanying its decision to cut the Bank rate by 1% to 2% on 4 December, ‘Despite the actions taken to raise bank capital, ease funding and improve liquidity, conditions in money and credit markets remain extremely difficult. The Committee noted that it was unlikely that a normal volume of lending would be restored without further measures.’ Equity markets have fallen more sharply, currency market volatility has increased, government bond yields have fallen on a flight to safety and corporate bond spreads have widened significantly further.
 

 

Full Report

 

www.forexhound.com/Uploads/Monday8December08.pdf