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mervyn king - this is the worst

lemonjelly
lemonjelly Posts: 8,014 Forumite
1,000 Posts Combo Breaker Mortgage-free Glee!
in Debate House Prices & the Economy
http://www.bbc.co.uk/news/business-15210112

Current situation is a crisis.

Describes it as the worst ever (worse than 2008?)
The Bank's Monetary Policy Committee has been split for months over whether the UK needs a boost to the economy through QE, an increase in interest rates to stave off inflation - which at 4.5% is well over double its target - or to leave things as they are.

Interesting - only Posen has been pushing for QE.

Are we confident in King? In the MPC?

Is he on the button here?
It's getting harder & harder to keep the government in the manner to which they have become accustomed.
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Comments

  • The_White_Horse
    The_White_Horse Posts: 3,315 Forumite
    he is a left wing fool. he should have raised interest rates in 2004 to cool everything off. but he sat on his fat behind and failed.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    lemonjelly wrote: »
    http://www.bbc.co.uk/news/business-15210112

    Current situation is a crisis.

    Describes it as the worst ever (worse than 2008?)



    Interesting - only Posen has been pushing for QE.

    Are we confident in King? In the MPC?

    Is he on the button here?


    I think he is fairly right and has been fairly on the button.

    Economic stability is and should be at the forefront for any western country at the moment.

    Yes inflation is higher, but with the signals coming from growth and commodities that could revers quiet easily if things carry on like they are.

    Inflation could be a lot worse if we were not targeting the economy as our main priority.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    lemonjelly wrote: »
    Interesting - only Posen has been pushing for QE.
    In fact the speed of the turnaround has led people to think that things must be much worse than anybody thought.

    But King has argued consistently that there isn't much the Bank can do, the rest is down to the government.

    QE is just a desperate measure to prop up the City, forced on the Bank by the government's failure to have any ideas at all.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • bo_drinker
    bo_drinker Posts: 3,924 Forumite
    I watched him on the news earlier and he gave me the impression he had panic written all over his face. Not one ounce of confidence, if I didn't know better I'd say he was sh1tting his self.
    I came in to this world with nothing and I've still got most of it left. :rolleyes:
  • ILW
    ILW Posts: 18,333 Forumite
    He did say that inflation will be within target by the start of next year. On his past record we should be allowing for 10% then.
  • luvpump
    luvpump Posts: 1,621 Forumite
    Part of the Furniture Combo Breaker
    http://ftalphaville.ft.com/blog/2010/04/30/216466/when-what-mervyn-king-says-in-private-goes-public/

    A bit of Honesty by merv from last year , at least in private anyway ;)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    pqrdef wrote: »
    QE is just a desperate measure to prop up the City, forced on the Bank by the government's failure to have any ideas at all.

    Rumour has it that RBS are running short of capital. So the BOE are ensuring that the money supply is maintained in the UK banking system.
  • A._Badger
    A._Badger Posts: 5,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It's hard to escape the conclusion that they are all bluffing. If economics was a proper science it would be able to make accurate predictions and take steps control situations. It isn't and it can't.
  • Mallotum_X
    Mallotum_X Posts: 2,591 Forumite
    Part of the Furniture Combo Breaker
    A._Badger wrote: »
    It's hard to escape the conclusion that they are all bluffing. If economics was a proper science it would be able to make accurate predictions and take steps control situations. It isn't and it can't.

    Partly because people, governments, etc all react to what they think may happen, so the situation changes.
  • ILW
    ILW Posts: 18,333 Forumite
    Does make you wonder why the BoE etc never saw it coming. Or if they did why they did nothing years ago.
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