Alasdair Macleod does an excellent job of outlining how the repo markets can be used to effectively force banks to supply credit. That will effectively be QE3 and I suspect it will be announced later this month or early September.

The resistance to acceptance of further stimulus are being knocked away as markets continue to crash. That will provide the “Great Excuse“. There is no turning back and the world will continue suffering because of it. It’s time to brace for impact.