LONDON Dec 19 Financial markets are
facing a more dangerous situation now than during the financial
crisis of 2008, Bank of England policymaker Paul Fisher was
quoted as saying on Monday.
Fisher, who is the central bank's executive director of
markets and sits on the Monetary Policy Committee, also said
governments had fewer options to deal with the current crisis
because of their stretched public finances.
"Most people in financial markets have not lived through an
episode like this before," Fisher told newswire Market News in
He said that while the situation is in "some ways not as
bad" in terms of market stress, it is at the same time
potentially "more dangerous".
Fisher was quoted as saying that in 2008, governments had
more leeway and cash available to stimulate their economies and
bail out banks.
Today that "sovereign backstop is less clear", Fisher said.
"The policy out is going to be more difficult than it was in
2009, given the current position of the sovereigns."