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Crisis may make 1929 look a ‘walk in the park’

Posted by Matt in December 25th, 2007

As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues things are rapidly spiralling out of their control

Twenty billion dollars here, $20bn there, and a lush half-trillion from the European Central Bank at give-away rates for Christmas. Buckets of liquidity are being splashed over the North Atlantic banking system, so far with meagre or fleeting effects.

  • Read more from Ambrose Evans-Pritchard
  • Is the crisis getting worse? Get the latest comment
  • The financial outlook in 2008: Experts’ predictions
  • As the credit paralysis stretches through its fifth month, a chorus of economists has begun to warn that the world’s central banks are fighting the wrong war, and perhaps risk a policy error of epochal proportions.

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