The only institutions which can kickstart funding for lending are central banks. The system needs more money injected into it and a more flexible approach to what assets can be used as collateral by banks borrowing from the BoE. Banks may then start to trust each other. Suggestions by the Chancellor that the Government has already done its bit shows how little the Government understands the situation. The Government and Bank of England’s paralysis begins to resemble the inaction over Northern Rock.