Mervyn King: "This was a bust without a boom"

chucky

HAMISH_MCTAVISH wrote: »

I joined hpc about 2 months before I joined here.

So where is this quote from 2007?

Or do you now admit you're a liar?

Another nice bit of fantasy made up trolling by Graham from Devon.

chewmylegoff

What's your point hamish? Is that there was no credit boom and that therefore the banks should double lending to businesses and mortgage lending? If so, I say again, it doesn't matter what went before, basle III is here to stay.

HAMISH_MCTAVISH

chucky wrote: »

Another nice bit of fantasy made up trolling by Graham from Devon.

Yes it's been happening a lot lately.

That and the endless playing of the man, not the ball, with all the "desperation" accusations every time he starts to lose the debate.

It's just a sign that his arguments are weak though, so best not to let it bother you.

chucky

HAMISH_MCTAVISH wrote: »

Yes it's been happening a lot lately.

That and the endless playing of the man, not the ball, with all the "desperation" accusations every time he starts to lose the debate.

It's just a sign that his arguments are weak though, so best not to let it bother you.

I've noticed it happen quite often too, it's quite sad that he can't grasp simple concepts and just derails threads because he doesn't like them. I'm starting to pity him, he should be grateful that we're educating him, some people are so ungrateful.

the_flying_pig

i suspect that what king meant is that CPI inflation didn't ever get [absurdly] high on his watch.

which is true but mostly irrelevant.

Wookster

You can smell hamish's desperation.

HAMISH_MCTAVISH

Wookster wrote: »

You can smell hamish's desperation.

Oh good.

Another one to add to the "desperation index".

The more you resort to such comments, the weaker we know your argument is.

purch

It's not desperation.

You see winning this argument is the key.

Once this petty squabble on an internet forum is won, everything goes back to how it was, GDP will be growing at 6% plus a year, inflation will be less than 2%, and Banks will be falling over themselves to lend to any tom !!!!!! or harry.

Nothing can be more important than winning this squabble.....the future of mankind hinges on it :eek:

the_flying_pig

Just for a 'laugh' I read some of the speech itself. Funnily enough it, well, doesn't support any of the crap typed out by Hamish, not least his risible " This wasn't a lending led boom in the UK", embarassing even by his very low standards.

As per my guess above MK was only talking about there not being high CPI inflation. Of course there was a boom in lending. Even the most shameless estate agent's PR man would freely admit this.

The following is a direct quote BTW, no text left out, also nothing pasted from completely different sources a la Hamish:

"Let me start by pointing out what did not go wrong. In the five years before the onset of the crisis, across the industrialised world growth was steady and both unemployment and inflation were low and stable. Whether in this country, the United States or Europe, there was no unsustainable boom like that seen in the 1980s; this was a bust without a boom.

So what was the problem? In a nutshell, our banking and financial system overextended itself. That left it fragile and vulnerable to a sudden loss of confidence. The most obvious symptom was that banks were lending too much."

I don't like the speech at all, BTW. I can sum it up in a snippet: 'my job was to keep CPI inflation low, I did that, so none of what happened was my fault'.

HAMISH_MCTAVISH

the_flying_pig wrote: »

So what was the problem? In a nutshell, our banking and financial system overextended itself. That left it fragile and vulnerable to a sudden loss of confidence. The most obvious symptom was that banks were lending too much.".

Yes, we all agree the banks overextended themselves.

But as has been pointed out by Broadbent, Flanders and others, they weren't lending too much to UK borrowers.

UK lending standards, and UK borrowers, had next to nothing to do with the position the UK economy now finds itself in.