Tuesday, Sep 18, 2007
Daily Mail questions whether King is fit to rule
Daily Mail: Mervyn King may be brilliant but is he the right man for this crisis?
Alex Brummer takes a hard look at The Guv and concludes:
Mervyn King, the hero of the fight against inflation, has not proved adept at battling in the turmoil in the markets and the most dramatic run on a British bank seen in modern times.
Posted by su @ 04:41 AM (616 views) Add Comment
6 Comments
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1. whiteknight said...
Oh come on ...
We are 5 minutes into this fiasco AND its a hum dinger. Essentially the failure of the house-of-cards western financial system.
It will only be the most dramatic run on a British bank in modern times until next week.
In reality he has little power whatever.
Even in PR terms there is little to be done.
Far be it for this Knight to defend a King, but this just seems like a pointless piece of "look at the personalities" journalism.
2. japanese uncle said...
Right after FRB was established (in 1913), history saw the first well planned and implemented boom and bust in 1929. Then in the 1980's and early 90's I witnessed boom and bust carefully choreographed by the BoJ (via pushing cheap credit even to the 'dismay' of the commercial banks, up until 1990 when it was abruptly withdrawn; Remember it was not done by the IR control but by manupilating the credit allocation available to banks through 'window guidance' by the BoJ) which incidentally became as 'independent of the duly elected government' as the FRB by the amendment of the BoJ law in 1997. Coincidentally in 1997, Crash G did exactly the same to the BoE, allowing the MPC to become independent of the government's 'opportunistic political drive' (Hey wait a second, they are still formed by the duly elected, ie better representing us than the MPC whose selection is utterly beyond our control!) which, as we have watched over the past 10 years, has managed to create the most spectacular boom & bust since 1929.
Clearly some force is at work, coordinating the central banks on a global scale.
If we prefer economic stability renationalizing central banks seems the only option (and their governors must be elected by voters separately from the parliaments.) You are right whiteknight, 'look at personalities' kind of personal attack is none but an attempt to divert our attention, as this is something institutional.
3. Alan said...
We can analyse styles of management (which sells newspaper space), but the sub-prime catastrophe is only partly played out.
The video posted on this site yesterday asked:
Q: Who is going to get hit.
A: We all are, some more than others.
There are a lot of difficult hurdles ahead for our western economic system - it almost makes a 15% reduction in houseprices fade into insignificance.
4. James said...
No, not 'clearly' japanese uncle. You have nothing but conjecture. Grow up.
5. dbnazz1 said...
Looking for scapegoats already!!!!!!
Don't make him a fal guy.
6. harold said...
James, JU is stating the obvious for anyone with a willingness to work it out for themselves. If in doubt:
http://video.google.com/videoplay?docid=-515319560256183936
It's a few years old now, but Bill Still is "right on the money", so to speak. Listen to what Larry Bates, former Bank president, has to say before telling others to "grow up".