From: John Boyle 
Newsgroups: uk.finance
Subject: Re: BoE loan to Northern Rock
Date: Tue, 6 Nov 2007 09:23:03 +0000
Bytes: 2181

In message , Jonathan 
Bryce  writes
>I realise they haven't printed 460m £50 notes, but they have increased M4
>money.
>
>The money that Northern Rock borrowed was used to repay the loans from other
>banks.  What did the other banks do with the money they were repaid?  That
>money won't have disappeared.  They will be able to do something with it.

They may be able to do something wit it, but they haven’t. The whole 
credit market has contracted dramatically.

I'm not sure that M4 has increased. The latest BoE figures are only up 
to end of September and they show no perceptible increase in the rate of 
increase in M4, but lets see what October's figures say.

-- 
John Boyle