[Noela]

I have spent the morning reading "The Guardian" U.K. (4 October). Here are a few snippets -
"Gordon Brown yesterday created a new 19-strong national economic council as he effectively put the government on an econimic war footing. 'the new problems have completely changed, so it is not just what the Treasury does, but also energy, food and housing'
the prime minister said.

"EU commissioner (Peter Mandelson) returns to government as crisis rquires 'all hands to pump'.
Mandelson ....was only asked to return to the cabinet on Thusday." (Other changes to the cabinet include Hilary Benn as Minister for a "new food department")

"Amid fresh signs that the economy is on the brink of recession, the Financial Services Authority said it would increase the security on deposits from £35,000 with effect from TUESDAY (my caps)...."

Heading of article by Nils Pratley - "When the Bank is buying car loans, you know this is a crisis". He continues "We swap US student loans for cash for three months. No, this is not an offer from a Bayswater money-changer. It comes directly from the Bank of England, which is now accepting some eye-catching forms of collateral. Car loans and equipment leases also make the grade........

" (The Bank of England) last week ..provided £40bn to the banks. On TUESDAY, (my caps.) it will offer another £40bn against the wider pool of collateral. Then it will hold another six weekly auctions of undetermined size. Then there is $70bn lent in overnight, six-day and one-week operations. Add it all up and it seems that the Bank has essentially replaced the gummed-up wholesale funding market. It is the only guy in town prepared to lend.

........"There is an understandable tendency to think that the Bank, when it makes big interventions in the money markets, knows that a piece of bad news is coming down the slipway."

Noela