The markets have reacted favourably (as they always do) to "hopeful" news.
Mr Osborne’s aides spoke of a “maxing out of Plan A” – taking advantage of the country’s record of fiscal discipline and credibility with the markets to unleash an aggressive monetary policy offering cheaper loans to businesses and households."
This is all very well, if one could trust the banks to lend the money on to companies and individuals. However, all that the banks will do it use the £100BN to shore up their own balance sheets.
Not one penny of this will reach the business or individuals who need it, and would be the engines of growth for the British economy.
It would be better of Osborne took the £100BN and simply dropped it from a helicopter over the UK, that way he could be sure that it will have some positive effect on the economy.
Am I being too cynical?
I don't think so, have you all forgotten the hopes and hype wrt Project Merlin?
Whatever happened to that then?