Folks, For those of you who have an interest in the current state of financial affairs, take a look at this BBC video. It explains in a few seconds clearly and in simple terms the situation which we are in.
http://news.bbc.co.uk/2/hi/business/7924506.stm Here is a snip: What is quantitative easing? Usually, central banks try to raise the amount of lending and activity in the economy indirectly, by cutting interest rates. Lower interest rates encourage people to spend, not save. But when interest rates can go no lower, their only option is to pump money into the economy directly. That is quantitative easing. The way the central bank does this is by buying up assets - usually financial assets such as government and corporate bonds - using money it has simply created out of thin air. The institutions selling those assets (either commercial banks or other financial businesses such as insurance companies) will then have "new" money in their accounts, which theoretically should boost the money supply. Mervyn1650Lobo __________________________________________________________________ Connect with friends from any web browser - no download required. Try the new Yahoo! Canada Messenger for the Web BETA at http://ca.messenger.yahoo.com/webmessengerpromo.php
