Meryvn King says that UK debts were too large.

Lotus-eater

ad44downey wrote: »

Oh dear. Mervyn 'wise after the event' King is at it again. I don't know how he has the gall to pick up his wage packet.

Wasn't it him who advised "Houses are worth what people will pay for them, but debt is debt?

And that was before the HPC started.

Wookster

Lotus-eater wrote: »

Wasn't it him who advised "Houses are worth what people will pay for them, but debt is debt?

And that was before the HPC started.

To be fair I think he did say that house prices were to high.

He didn't do anything about it, or say that very loudly though :rolleyes:

Lotus-eater

Wookster wrote: »

To be fair I think he did say that house prices were to high.

He didn't do anything about it, or say that very loudly though :rolleyes:

Well he said it on television, how loud do you want? If people decide not to listen, that's something else.

It was already much too late at that point though, to be fair.

Wookster

Lotus-eater wrote: »

It was already much too late at that point though, to be fair.

He should have stopped it happening as he saw it coming - the fact that he saw it happening and did nothing makes him worse imo than say Goodwin who by the sounds of it just didn't see it coming.

ad44downey

Lotus-eater wrote: »

Well he said it on television, how loud do you want? If people decide not to listen, that's something else.

It was already much too late at that point though, to be fair.

He's supposed to do something about it not just talk about it.. Otherwise what's the point in him having the job?

mrposhman

I'm still undecided on Mervyn King.

To be honest the powers that they had were diminished massively buy who again. Oh yes Uncle Gordon again!!

Its funny now that his original ploy to devolve power from the bank of england has now been reversed after they had very little to play with to try to avert disaster.

MrFonzerelli

Wookster wrote: »

He should have stopped it happening as he saw it coming - the fact that he saw it happening and did nothing makes him worse imo than say Goodwin who by the sounds of it just didn't see it coming.

Goodwin's ignorance or stupidity, doesn't make him any less guilty.. Punish people who admit to 'seeing it coming' leads to the political dark art of feigning ignorance.

I don't think Mervyn had the power to stop it happening. He's remit was to chase CPI. Who could he go to, his boss? Labour were riding far higher in the polls due to economy, there was little incentive for anyone to declare we were in a bubble (besides a few groups no-one in power was listening to) and the head of risk that did, got fired.

Wookster

MrFonzerelli wrote: »

I don't think Mervyn had the power to stop it happening. He's remit was to chase CPI. Who could he go to, his boss? Labour were riding far higher in the polls due to economy, there was little incentive for anyone to declare we were in a bubble (besides a few groups no-one in power was listening to) and the head of risk that did, got fired.

That his remit was to target CPI doesn't excuse him either - he should have seen that something was coming and done something.

A few years ago I was talking to a friend about house prices and it went along the lines of people have short memories they think prices will never drop => what if unemployment or interest rates rise? => banks will see bad debts on a massive scale.

It doesn't take a rocket scientist to work that one out. I stopped thinking after that as I knew the consequences of banks being in trouble are just enormous.

King's excuses are lame. He should have acted. He walked into a trap - by doing nothing he now is a thoroughly spent force in the city.