can anyone provide an explananation?

Obviously I'm no financial wizard, so can anyone please explain (in simple English) how this Quantitative Easing is supposed to work and who actually gets the money?

The BoE have now pumped £127 Billion of, I assume tax payers, money into the "economy" to help bring us out of the recession, but we are told the majority of banks are not passing this on to small business and as loans to home owners. The question is, where is this money and who physically has it?

I ask because a report in yesterday's Times newspaper said the BoE is now holding more money in the high street Bank's "Deposit Accounts" than ever before. Have the Banks been bailed out only to be fed more money that they can squirrel away in their accounts, or use it to go back into large profits? As Vince Cable, I think, said it's not difficult to turn a profit when you get a loan at 0.5% and loan out at 3%.

Surely one way to pump the money into the economy would be to put it into the pockets of the people who spend it, i.e. the public. Some may have been saved, but the vast majority would have immediately gone straight back into the economy.

Can anyone out there clarify this?

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