The Bank of England cut rates again yesterday (from 1.5% to 1%), in another attempt to draw a red line under the recession and falling confidence.
Not a moment too soon, judging by the report in the Times that notes that the number of businesses filing for administration (after adjustments for one multi operation failure) in the last quarter of 2008 was 1,289 (a rise of 124%).
However, the Bank of England knows that the rate cuts are meaningless, if banks continue to provide the lifeline of loans and finance to struggling businesses and individuals. To this end it is clear that quantitative easing (ie printing money) is necessary, and will have to be implemented soon.
In other news I am pleased to see that RBS have been reading this site:
"I wonder how many of the RBS board will resign for their folly, end eschew generous payoffs?"
RBS have just axed 7 non executive directors, in an attempt to distance itself form those who brought about its destruction.
Quite why RBS needed so many NEDs (given that they allowed Fred "The Shred" and his acolytes to destroy the bank - ie did nothing) remains a mystery.
They would have been well advised to read my advice about the role of NED's, published in 2003. RBS might have been been saved, had they followed that advice.