Diamond Jubilee To Hit Uk Economy, Says Mervyn King

[interestrateripoff]

http://www.bbc.co.uk/news/business-17530003

Sir Mervyn King, the Governor of the Bank of England, has said he expects the UK economy to contract between April and June due to the Queen's Diamond Jubilee bank holiday.

Speaking to the House of Lord's Economic Affairs Committee, he forecast a repeat of last year, when the Royal Wedding bank holiday hit output.

He's worth his salary isn't he.

Perhaps he might make a better comic than central banker.

Edited March 27, 2012 by interestrateripoff

[MrPin]

What? One extra day off an the World will turn to sh-it?

[Chuffy Chuffnell]

It's such utter nonsense.

Yes there's an extra bank holiday... but on that day people will be spending. Indeed for many it'll be one of the busiest and most profitable weekends of the year! And there's the additional tourists, global publicity for the UK, etc, like with the Royal Wedding.

Edited March 27, 2012 by Chuffy Chuffnell

[interestrateripoff]

http://www.telegraph.co.uk/finance/economics/9170099/Elderly-exaggerate-QE-effect-on-pensions-claims-Bank-of-England-Governor-Sir-Mervyn-king.html

Britain's top economist said the Bank's monetary easing programme is not as bad for the value of pensions as has been claimed.

In a hearing at the House of Lords on Tuesday, he admitted he could not rule out an extension of QE, which was increased by £50bn in February to a total of £325bn.

Sir Mervyn said the falling value of pensions was not the fault of the extra stimulus. "I'm concerned about what has happened to the pensions industry and defined benefit pensions but I think they reflect a wider set of issues. The decline cannot be laid at the door of our programme.

"It might not have had quite such as big an effect as some people think."

Sir Mervyn also risked raising tempers in the City by moralising over the fact many bankers are motivated purely by money. "One of the most depressing things about some parts of the financial sector is that people seem to think their main objective of being in it is to earn enough money in order to leave it – as opposed to finding satisfaction and a life-long career within it," he said.

Although I will say the pension problems are ponzi.

[shindigger]

We've long since passed the stage where Chris Morris type headlines have become the norm on mainstream news.

Firmly in to Daily Mash territory here.

It may as well be lead story on BTN from V for Vendetta.

Pathetic.

******ing pathetic.

Are people really buying this warmed up shiyte any more?

[Redcellar]

We've long since passed the stage where Chris Morris type headlines have become the norm on mainstream news.

Firmly in to Daily Mash territory here.

It may as well be lead story on BTN from V for Vendetta.

Pathetic.

******ing pathetic.

Are people really buying this warmed up shiyte any more?

Yes.

By the bucket, or should I say toilet, load.

Farcical.

Edited March 27, 2012 by Redcellar

[Ash4781]

More QE required?

[R K]

Mervyn is nothing if not rigorously thorough with his data.

Which means he wouldn't say this if he didn't have the stats. to back it up.

Which means he's correct.

[shindigger]

Mervyn is nothing if not rigorously thorough with his data.

Which means he wouldn't say this if he didn't have the stats. to back it up.

Which means he's correct.

Does he have an influence on how the "data" is, collected,manipulated, and interpreted?

Genuine question. I can't be bothered to look.

PS. I bet he does..

[Debbiebegood]

http://www.bbc.co.uk/news/business-17530003

Just heard it on the news.Unbeliavable.What an im***il.

What a lousy excuse for a dismal state of the economy (to which he also contributed),and he is supposed to be the best of UK banker's brains.You could not make it up.

[plummet expert]

It's such utter nonsense.

Yes there's an extra bank holiday... but on that day people will be spending. Indeed for many it'll be one of the busiest and most profitable weekends of the year! And there's the additional tourists, global publicity for the UK, etc, like with the Royal Wedding.

What alot of rubbish the Governor does spout! The Jubilee will, just like the Royal wedding, give us a mini boost and the growth figures will have be better than without it.

OR IS IT LIKE THIS? : I think the British economy will contract because there's leaves on the line init and all the jobs are being taken by people who want to work. "Is it coz i is british?" asked a 24 year old man from the midlands who has yet to land his first job. He did a one day trial in a cafe and lost out to a polish man. He then stuck it out on benefits for another year until someone told him he'd be cut off from JSA if he didn't sign on by 10am. He ran to the office so fast it was unbelieveable. But it did take 3 days kip to get over it after. When asked if inflation affected him he said, "If you don't hold the pump right the bed just goes down dunit".

Surprising what happens to people even when they have 5 GCSE's at grade C or above.

Edited March 27, 2012 by plummet expert

[zugzwang]

His record speaks for itself.

[billybong]

Sir Mervyn said the falling value of pensions was not the fault of the extra stimulus. "I'm concerned about what has happened to the pensions industry and defined benefit pensions but I think they reflect a wider set of issues. The decline cannot be laid at the door of our programme.

Of course not. For sure someone else was to blame.

[billybong]

.

Edited March 28, 2012 by billybong

['Bart']

And there's the additional tourists, global publicity for the UK, etc, like with the Royal Wedding.

In theory this should be a bumper year for UK tourism, with the Olympics as well.

Poor Merv, reduced to clutching at such thin straws.

[porca misèria]

Are people, including HPCers, confusing two different things yet again (like, deficit vs debt)?

1. QE hurting annuity rates, thus damaging people taking out a NEW annuity.
   
2. QE hurting interest rates for those with savings.
   

The first of those is pretty devastating for those affected. The second is much more marginal, but is getting bigged up because it affects older pensioners.

[Sour Mash]

It's such utter nonsense.

Yes there's an extra bank holiday... but on that day people will be spending. Indeed for many it'll be one of the busiest and most profitable weekends of the year! And there's the additional tourists, global publicity for the UK, etc, like with the Royal Wedding.

And there's the Olympics which surely must mean a huge economic boost this year. Let's not forget that this has been a leap year so we've had one extra day too.

Really, just how ******ing thick does Merv think the population is? The problem is, he's probably not wrong in his estimation of the general lack of intelligence of the public.

[Chuffy Chuffnell]

And there's the Olympics which surely must mean a huge economic boost this year. Let's not forget that this has been a leap year so we've had one extra day too.

Really, just how ******ing thick does Merv think the population is? The problem is, he's probably not wrong in his estimation of the general lack of intelligence of the public.

The majority of Britons don't know what money is let alone who Sir Merv is...

[Wayo]

It's such utter nonsense.

Yes there's an extra bank holiday... but on that day people will be spending. Indeed for many it'll be one of the busiest and most profitable weekends of the year! And there's the additional tourists, global publicity for the UK, etc, like with the Royal Wedding.

The BoE and others have been looking at economic data for long enough to know if Bank Holidays have an effect or not. The pretty settled opinion of those that do so is that Bank Holidays have a negative effect on economic activity. Sure B&Bs might do well, people may also go shopping, but the real economy, where the real money is made, manufacturing and services basically shut down, things are not made, clients are not billed, factories close, business deals are not closed, contracts are not signed, business people don't travel or rack up their expense accounts and most people stay at home with the family.

Cameron is such a rabid Royalist that two years running we have had an extra Bank Holiday for that family and £bn it has cost the rest of us.

The Olympics may be more difficult to judge as there aren't several of them every year. On the one hand the government is spending money like water, on the other economic theory would caution about crowding out. For example the lack of hotel space in London means that London is effectively closed to regular tourists and many businesses / events too, many more will work from home and major music festivals have been cancelled. So we shall see...

[Dorkins]

The BoE and others have been looking at economic data for long enough to know if Bank Holidays have an effect or not. The pretty settled opinion of those that do so is that Bank Holidays have a negative effect on economic activity. Sure B&Bs might do well, people may also go shopping, but the real economy, where the real money is made, manufacturing and services basically shut down, things are not made, clients are not billed, factories close, business deals are not closed, contracts are not signed, business people don't travel or rack up their expense accounts and most people stay at home with the family.

Cameron is such a rabid Royalist that two years running we have had an extra Bank Holiday for that family and £bn it has cost the rest of us.

Of course, GDP doesn't include the value of spending a nice sunny day at home with your family. Some of us would rather have the time than the money but can't easily negotiate extra days off because our culture is so obsessed with standardised working practices.

[goldbug9999]

The pretty settled opinion of those that do so is that Bank Holidays have a negative effect on economic activity.

To be fair to the BoE bank holidays quite obviously do have a negative economic effect (they are a "broken window" in economic terms). The point remains that it is laughable that one extra day off is going to make or break our countries finances.

Edited March 29, 2012 by goldbug9999

[Wayo]

To be fair to the BoE bank holidays quite obviously do have a negative economic effect (they are a "broken window" in economic terms). The point remains that it is laughable that one extra day off is going to make or break our countries finances.

It may not make or break anything but it could easily be the difference between a contraction of -0.2% and growth of +0.1% which is the difference between a technical recession or not.

[Spoony]

Are people, including HPCers, confusing two different things yet again (like, deficit vs debt)?

1. QE hurting annuity rates, thus damaging people taking out a NEW annuity.

2. QE hurting interest rates for those with savings.

The first of those is pretty devastating for those affected. The second is much more marginal, but is getting bigged up because it affects older pensioners.

Mervyn King is a moron.