Credit Easing? How is the govt going to buy corporate bonds?

[johnfm]

Just how many companies that are big enough and well structured and so on to issue corporate bonds cannot already issue them into the market?

Is the government going to buy bonds from small business?

Really?

[johnfm]

Paxman is exploring this as we type...

[johnfm]

Seems one of those ideas that is sound in principle, but the mechanics of implementing it seem a touch difficult...

[Ozzie Osmond]

Government options,

1. Give more money to banks for lending to businesses.
What did the banks do last time? Just kept the money.

2. Lend money directly to businesses to stimulate the economy.

Hmmm. I wonder which is more constructive?

[gerradiuk]

Osborne, if you want to make sure you get taxes from the North Sea, and you need the money - direct your credit easing to companies going into production in the North Sea - it is an obvious approach and one that carries a lot less risk than the state getting involved in microbusinesses

[elster]

I am pretty sure Osborne may well have an idea of what he meant.

Trouble is he hasn't explained it.

Here is Justine Greening explaining it... car crash perhaps.

http://www.bbc.co.uk/news/uk-politics-15154515