porca misèria

Mervyn King Is Our Best Hope

37 posts in this topic

Liam Halligan's column jumps to King's defence. Halligan has often been critical of King and the bank in the past (for example, he was ahead of the rest of the chattering classes in saying no to QE).

Halligan's central thesis: King is just about the only senior policymaker who is still trying to get banking reform. The fat cats want his scalp because he's the only one standing in the way of their gravy train getting back to full speed. Hence they're driving a campaign of anti-King stories (some of them lapped up here on HPC) designed to discredit him.

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Never mind that, isn't it time the borrowers took responsibility for their actions? :rolleyes:

I mean, Banking reform, it's not necessary is it? Quick!! Look, over there a man with three arms...

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Liam Halligan's column jumps to King's defence. Halligan has often been critical of King and the bank in the past (for example, he was ahead of the rest of the chattering classes in saying no to QE).

Halligan's central thesis: King is just about the only senior policymaker who is still trying to get banking reform. The fat cats want his scalp because he's the only one standing in the way of their gravy train getting back to full speed. Hence they're driving a campaign of anti-King stories (some of them lapped up here on HPC) designed to discredit him.

I'd totally agree with this. I believe King is not very capable, however it is clear that much of the outcry against him is from vested interests. It's going to be very tempting for the Tories to say "****** it, let's go for another credit bubble" over the next 12 months as the UK starts to fall apart.

I'd rather have an unelected official (chosen by elected officials) wield power over the banks than have the banks rule the roost over government.

What I would like to see this time is King actually resign and spill his guts if the government go down the same path as Labour. Instead of sitting back and taking the considerable pay with periodic mumblings of discontent. I know that's hard on King but if ever we needed men of principal it's now.

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I can scarcely believe this: King is the one who cut interest rates in 2005 when he should have been increasing them, he is also the one who cut rates to half one basis point

Now he is Saint Mervyn King, all of a sudden?

I don't see him as anything other than the man who kept the bubble inflated

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I can scarcely believe this: King is the one who cut interest rates in 2005 when he should have been increasing them, he is also the one who cut rates to half one basis point

From the article referenced:

In August 2005, lest we forget, King was out-voted when he tried, amid signs credit was over-heating, to prevent interest rates being cut.

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King's recent comments about failing to have raise rates to prevent HPI are now going to be used as justification for keeping rates low. With the housing market in decline he'll argue that rates must be kept low to prevent a crash.

The MPs' sabre rattling is simply that many of them are seeing their property portfolios stagnating and believe that at this point in time a new head of the BOE can somehow restore HPI with a magic wand. It'd be interesting to see how many of these MPs' are property VIs?

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It was the fact he stated "there was no chance of foreseeing a bust because there was no discernible boom" has really destroyed his reputation as far as I am concerned.

In fact he still can't see it....which is why he has to go with his reputation in complete tatters.

EDIT: He has plainly over estimated the productive capacity of the economy both in managing growth but also by the fact he always foresees well above target inflation falling back below target 2 years out because of the "output gap".

Edited by No Future

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King's recent comments about failing to have raise rates to prevent HPI are now going to be used as justification for keeping rates low. With the housing market in decline he'll argue that rates must be kept low to prevent a crash.

The MPs' sabre rattling is simply that many of them are seeing their property portfolios stagnating and believe that at this point in time a new head of the BOE can somehow restore HPI with a magic wand. It'd be interesting to see how many of these MPs' are property VIs?

http://www.housepricecrash.co.uk/forum/index.php?showtopic=153979

King was deputy governor from 1998 until be became governor in 2003 if he is our best hope given what has happened during his time then god help us.

He is currently doing the decent thing and taking some flak from his vested interest chums, so they can argue for a banker to be put in charge. With King you watch what he does not what he says. He warns of fire while at the same time throwing fuel on it.

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http://www.housepricecrash.co.uk/forum/index.php?showtopic=153979

King was deputy governor from 1998 until be became governor in 2003 if he is our best hope given what has happened during his time then god help us.

He is currently doing the decent thing and taking some flak from his vested interest chums, so they can argue for a banker to be put in charge. With King you watch what he does not what he says. He warns of fire while at the same time throwing fuel on it.

+1

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It was the fact he stated "there was no chance of foreseeing a bust because there was no discernible boom" has really destroyed his reputation as far as I am concerned.

In fact he still can't see it....which is why he has to go with his reputation in complete tatters.

EDIT: He has plainly over estimated the productive capacity of the economy both in managing growth but also by the fact he always foresees well above target inflation falling back below target 2 years out because of the "output gap".

i think thats a bit harsh considering his narcolepsy

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This is a joke? He is completely useless.

He is to blame for the crisis and for the lack of growth/recovery for the last 5 years!!!!!!

If he had raised IR either before or after we would have been over the recession...

So please no more PR from the BoE here...

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This is a joke? He is completely useless.

He is to blame for the crisis and for the lack of growth/recovery for the last 5 years!!!!!!

If he had raised IR either before or after we would have been over the recession...

So please no more PR from the BoE here...

I'm no supporter of King. He is a problem, but I think in the rush to kick him we shouldn't allow the banking industry to seize the agenda or smuggle in ideas that stop reform.

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Whoever takes over from King the one thing we can be sure of is that the economy will continue to be run for the benefit of the select few. :angry:

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I'm no supporter of King. He is a problem, but I think in the rush to kick him we shouldn't allow the banking industry to seize the agenda or smuggle in ideas that stop reform.

I think support for banking reform is King's "redeeming feature". I agree the performance of the MPC has been dire under his stewardship, but to get rid of him now when there could finally be some payback would be a bit daft.

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I think support for banking reform is King's "redeeming feature". I agree the performance of the MPC has been dire under his stewardship, but to get rid of him now when there could finally be some payback would be a bit daft.

Yes, I think that's the best way of putting it. He didn't have enough backbone to push back on inflationary policy but seems to now have some balls about banking reform. As I said earlier he needs to get this done or if the politicians want to take the short-term fix he needs to resign and "shout from the rooftops" even if it means not getting invited back to wimbledon.

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I can scarcely believe this: King is the one who cut interest rates in 2005 when he should have been increasing them, he is also the one who cut rates to half one basis point

Now he is Saint Mervyn King, all of a sudden?

I don't see him as anything other than the man who kept the bubble inflated

Output is still below 2008. This is a longer depression that 1930s.

If you thing 0.5% would even have mattered in the slightest you're living in a different universe.

You think that would have halted securitisation? AIG? The FED? China? Altered boomer demographics?

You're nuts.

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I'm no supporter of King. He is a problem, but I think in the rush to kick him we shouldn't allow the banking industry to seize the agenda or smuggle in ideas that stop reform.

Frankly, he has consistently kicked the can of reform so far into the future that was ever little chance of it occurring. 'Reform' has always been considered 'too damaging' to do now.

What happened to splitting up the banks. What happened to sensible proposal to bring in LTV and/or income multiples? etc etc As soon as they get close, they issue another paper and decide that it is too difficult.

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This is a joke? He is completely useless.

Yes, I thought Halligan's account had been hacked when I read it

I'm no supporter of King. He is a problem, but I think in the rush to kick him we shouldn't allow the banking industry to seize the agenda or smuggle in ideas that stop reform.

Some truth in that no doubt

I think support for banking reform is King's "redeeming feature". I agree the performance of the MPC has been dire under his stewardship, but to get rid of him now when there could finally be some payback would be a bit daft.

Finally? Been a long time coming if it's indeed here at last

Output is still below 2008. This is a longer depression that 1930s.

If you thing 0.5% would even have mattered in the slightest you're living in a different universe.

You think that would have halted securitisation? AIG? The FED? China? Altered boomer demographics?

You're nuts.

Not going to bother getting sidetracked by your troll post, but I will say that 0.5% has allowed EAs and property VIs to play very favourable mood-music and keep HPI going. And that's what this site, housepricecrash, primarily addresses as an issue. If you can't see the wood for the trees, it's you who's the spherical object that can cause allergic reactions

Edited by inflating

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If you thing 0.5% would even have mattered in the slightest you're living in a different universe.

You think that would have halted securitisation? AIG? The FED? China? Altered boomer demographics?

+1

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I blame the 2001 interest rate cuts after 9/11

That was the most idiotic thing to have happened, both here and state side.

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+1

-1

It was the raising of rates in 2006-2007 that made the system go pop. If it had been done earlier, the scale of the problem would have been considerably smaller. The two cuts from 4% to 3.5% should have gone in the other direction and continued upwards.

As for the argument that the Bank of England were powerless due to the global situation, what an indictment of the BoE's influence. As the governor of the BoE, Mervyn King didn't have to rely merely on his ability to persuade. He also had the power to materially affect the global situation in a way that would force others to take notice.

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