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Fed launches $800bn bailout

The US Federal government is to launch another bailout initiative to help the American economy, this time for $800bn.

The newest bailout will include a $600bn scheme to buy mortgage-backed assets and also a $200bn facility to back consumer loans, including student debts, car loans, and credit card debts.

This comes after Chancellor Alistair Darling outlined a £20bn fiscal stimulus to aid the UK economy, and the Chinese government revealed a 4 trillion Yuan (£388bn) package for its own economy. French President Nicolas Sarkozy has also promised a “quite massive” fiscal package by December.

The latest US plan means $1.3 trillion has now been pumped into the ailing US economy, and hopes to block the illiquid credit markets.

The US Fed says: “This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved financial conditions more generally.”


Repos to raise the roof

So, the authorities have acted at last. The Bank of England has itself now been renation-alised and is firmly back under the control of the politicians at the Treasury. By the way, am I the only person who thinks that the “independence” of the Bank of England has been an unmitigated disaster – more of this another time.

Brexit: what to expect in the aftermath

James Dowey, Chief economist & CIO In these very early stages following the “Leave” win any prognosis is by its nature highly tentative. It will be weeks before we are able to measure the acute impact of the result on the UK economy, and there are clearly no close historical parallels on which to base […]


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