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Mervyn King Is Our Best Hope


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#1 porca misèria

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Posted 06 May 2012 - 06:46 AM

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.

#2 Gone baby gone

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Posted 06 May 2012 - 07:03 AM

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...

#3 bmf

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Posted 06 May 2012 - 07:05 AM

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.

#4 inflating

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Posted 06 May 2012 - 07:41 AM

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

#5 porca misèria

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Posted 06 May 2012 - 08:02 AM

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.



#6 inflating

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Posted 06 May 2012 - 08:05 AM

From the article referenced:


Oh come on :lol:

#7 Blod

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Posted 06 May 2012 - 08:07 AM

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?

#8 TulipBubble

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Posted 06 May 2012 - 08:08 AM

After Gordon Brown he probably has the greatest responsibility for the scale of the mess.

#9 hotairmail

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Posted 06 May 2012 - 08:17 AM

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, 06 May 2012 - 08:19 AM.

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#10 Democorruptcy

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Posted 06 May 2012 - 08:25 AM

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.housepric...howtopic=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.

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses. 

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people


#11 inflating

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Posted 06 May 2012 - 08:27 AM

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

#12 Georgia O'Keeffe

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Posted 06 May 2012 - 08:32 AM

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

#13 7 Year Itch

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Posted 06 May 2012 - 09:04 AM

Obi-Merv Kingobi, you are my only hope - Princess Leia Halligan

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Edited by SeeYouNextTuesday, 06 May 2012 - 10:07 AM.

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No need to sell up, the next phase of the economics cycle is going to be very positive for anyone that owns property.

All I'm sayings is, don't listen to the property bears people, they are wrong.


#14 AC44

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Posted 06 May 2012 - 09:09 AM

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...

#15 bmf

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Posted 06 May 2012 - 10:01 AM

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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