recession - Sir Mervyn King's dire warning
 

From The Times today
http://www.thetimes.co.uk/tto/busine...cle3185997.ece

Sir Mervyn dismissed fears that printing more money would trigger dangerous levels of inflation, saying that Britain’s problem was too little money in the economy, not too much.

“This is the most serious financial crisis we have seen at least since the 1930s, if not ever, and we are having to deal with very unusual circumstances but react calmly to this and do the right thing,” Sir Mervyn said. “The right thing at present is to create some more money to inject into the economy.”

Less than an hour after the decision, the European Central Bank defied calls in financial markets for it to cut its interest rate from 1.5 per cent, despite the intensifying debt crisis in the eurozone.

Instead, Jean-Claude Trichet, the bank’s president, said that he would pour emergency credit into the zone’s euro area’s stricken banking systemin the hopes that this buys time for the region’s governments to put the embattled single currency on an even keel.

The Bank of England pointed the finger firmly at the eurozone area as it warned that Britain’s economy was being threatened by intensifying strains across the Channel.

Judging by LinkedIn at the moment - there are plenty of peeps looking for a plan B. At dinner last night, the people who work in finance here were saying they were being inundated with contacts looking to leave London.