Bank Of England Assistance Too Little Too Late?

While world stock markets have shown some resilience over the last couple of weeks, sentiment is still very much balanced on a knife edge with further concerns that we nay not have seen the worst of the so called credit crunch.  Any investor who believes that markets are over the worst should watch carefully over the next few weeks, with more bad news expected from the corporate sector.

As inter-day interest continue to push higher the Bank of England have been injecting liquidity into the markets this week, but on no where near the scale of their US and European counterparts. This has angered many in the financial sector, although quite rightly the Bank of England have reiterated that any long term problems are not the result of the credit crunch, and more to do with a lack of restraint from many financial companies chasing profits.

There have been a number of rumours circulating, which suggest a selection of high profile financial companies may well be struggling, and down beat statements may following in the very short term.  Many are still waiting for the knock on effect of the original concerns, although there are still many investors seeing the current situation through rose tinted spectacles - they may be in for a shock!