
Brown is trying to deflect blame onto the bankers
Why won’t the banks pass on the rate cut? Because there isn’t anything to pass on. And for the life of me, I can’t work out why they don’t point this out. The Bank of England base rate simply doesn’t mean the Bank of England is lending to banks at 2 percent. The plumping doesn’t work that way, not no more. British banks aren’t hoarding anything. They have no net assets. They have to borrow every penny they lend. Once they borrowed from the wholesale market, which has seized up. What cash is available comes at a hefty price. By means of illustration, the banks had to pay 12 percent
