August 6, 2009
The Bank of England has announced that it is extending its quantitative easing program to 175 million pounds from 125 pounds in order to ensure that interest rates on government debt stay subdued and thereby help promote economic recovery.Britain has been hard hit by recession and the financial crisis, faces rising unemployment and these are sensible measures to help with the government spending financed through the PSBR undertaken by the government in an effort to stimulate the British economy.
Another important bit of good news in the U.S. is the fact that Morgan Stanley has bought back its warrant for stocks that it gave the U.S. government as security against its 10 billion dollars in Tarp funds. The bank bought back the warrant for 950 million dollars after having paid back the 10 billion in June. It also announced that it has paid 1.3 billion dollars for the 10 billion it was loaned by TARP and that the U.S. taxpayer gained a 20 % return on its investment in the bank.
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