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FT: BoE Should Continue Pension QE Indefinitely (Paywall)
- rcarr 4y agoArticle can be accessed by googling "UK watchdogs hold crisis talks to avert gilts cliff-edge" and clicking through. Relevant Quote: > “But unless something changes on the fiscal policy side the BoE will have to stay in the market longer. The market needs to see how they are going to get a decline in debt to GDP over the medium term. Either the policies from the budget have to go or they are going to need massive spending cuts. One option might be for the BoE to formalise its gilt-buying operation into a permanent facility that could be triggered in similar circumstances, without the need for emergency intervention or the backstop of taxpayer funds, a former policymaker said." We have only just ended QE for the banks and now we're about to start again for the pensions. Are we just going to have a never ending QE roundabout where when one part of the financial industry starts failing the central banks bail them out causing another part of the system to start failing and launching QE for that, ad nauseam? Is this the financial "system" now?