BOE Policymaker: Prepare for Lehmans Re-Run!

• Sound advice from the this BOE policymaker! A western banking system collapse is brewing!
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  Prepare for Lehmans re-run, Bank official warns! 
  By Philip Aldrick, http://www.telegraph.co.uk/ 
  Banks and traders must prepare for a devastating market seizure as governments grapple with the escalating economic crisis in Europe, a Bank of England policymaker has warned.
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  Cheap and ready access to the liquid assets that oil the financial markets are under threat from both state-imposed capital controls and flagging confidence in the euro, Robert Jenkins, a member of the Bank’s Financial Policy Committee, told the Global Alternative Investment Management conference in Monaco.
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  Without easy access to liquidity, markets could seize in a re-run of the credit crunch after the collapse of Lehman Brothers, he warned. “Those of you who traded asset backed securities in 2008 can testify to the speed with which liquidity can disappear,” he said. “Yet despite these examples, many continue to assume that … ‘liquidity’ is free and will be freely available.
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  “Short-selling bans in Europe and bond purchase penalties in Brazil are a foretaste of the future. I recommend that you send your best and your brightest to the library to research state intervention in the post war period. It could come in handy. For like clean air and water, market liquidity is no longer limitless and no longer free.”
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  His comments came just minutes before the Bank launched its first £5bn emergency liquidity auction under the arrangements unveiled last week to protect Britain’s lenders from a crunch. At least £60bn will be made available to Britain’s banks over the next 12 months.
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