Sunday 18 January 2009

Confused?

Daily Mail:
VINCE CABLE: As another bank bail-out looms: Confused? You may very well be... but most of Britain's bankers are, too
"Our own Government will announce new proposals to save the banks and restore bank lending, as its existing plans are clearly not working.The market speculation in banks’ shares of the past few days has been compounded by a foolish own goal by the British Government. ...The financial regulator, the FSA, decided, with spectacularly bad timing, to allow previously banned short selling: the practice of borrowing shares and selling them for speculative gain.The immediate result of this was to contribute to a run on Barclays shares, which lost a quarter of their value in one day.It beggars belief that the FSA thought it sensible to invite a new wave of speculative attack on bank shares in the middle of this crisis, in effect licensing gambling against the taxpayer."

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