Thursday, Sep 20, 2007
So is Sir Mervyn King the "Fall Guy?"
BBC: Bank chief defends role in crisis
Mervyn King had every reason to protect the BoE's integrity, both the SFA & the Government are clearly putting a squeeze on the "Hawk". But what the Government and the Quango have to realise, that there is only so many layers of wallpaper you can put on a wall before all of the wallpaper peels away. If I didn't know better, I would say this market intervention of an unprecedented nature. And the word Communism or Fascism would be not short of what is actually occurring. NR, is down 20%, and was down as low as 42% this morning. So when are we going to return to straightforward traditional capitalism, instead of the bastardised tripe that the public are now being served up.
Posted by stevie dee @ 11:13 AM (510 views) Add Comment
7 Comments
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1. Disillusioned said...
So is Sir Mervyn King the "Fall Guy?" - Of course he is. They've fonud their scape goat. They know what is going to happen soon and they've now got someone to blame it all on, even though he actually seems to be one of the only people trying to do the right thing!
2. mrmickey said...
It does seem reading peoples comments on this website and others that most people support Merv and realise it's just the reptilian politicians trying to save their own skins, which is reassuring.
3. C'mon Correction said...
Yes I agree. The reason we're in this mess is due to the MPC being far too dovish (plus using CPI as a measure of inflation) over the last 5 years. Everyone knows Mervyn King is one of the most hawkish members of the MPC.
This is New Labours fault, no one elses. Gordon Brown is probably one of the worst Chancellors this country has ever had, the fact that most of the public don't think that shows how good they are at spin.
Trouble is, I can see more meddling ahead by Labour to try to avert a Depression and that will only compound our situation and thus our economy will never recover. By that i mean dropping out of the top 50 economies in the world - we're currently no. 6.
Anyone want to bet against UK will be out of the top 50 economies within the next 50 years?
4. inbreda said...
I respect Merv (in terms of his integrity) and am positive he was forced into this by Gordo - so much for BoE independence.
I think that Merv will resign shortly. Possibly next week. That or go the way of David Kelly.
5. shipbuilder said...
There's never been 'straightforward traditional capitalism' under the Tories, Labour or anyone else. The system is run by those in (real) power for their benefit and we all know it.
What is an intervention? don't they happen all the time as 'fiscal policy' or under any other amount of disguises? The dropping of interest rates in the first place to stave off the dotcom bust was surely the biggest intervention in recent memory. Couldn't one argue that every interest change decided by committee is an intervention?
The problem is that we accept that what we have is a 'free market' (we are also convinced that a free market is a good thing) unquestioningly becuase those that run the market for their own benefit have told us so - through blind greed we have given them the authority to do this.
This latest example is simply the exposure of the 'real' system that happens every once in a while due to the bungling nature of incompetent politicians.
Rant over - i'm not talking about some "global one world power" conspiracy here - simply greedy men in positions of power doing as they have always done - wouldn't you?
6. Hotairmail said...
I hold the BBC, and their lightweight reporter Robert Peston in particular, directly responsible for triggering the run on Northern Rock with their appalling reporting of Northern Rock's access to 'emergency' funds from the BoE.
In his headline BBC evening news slot, Peston failed to adequately draw the distinction to his viewers between the losses that banks will suffer from not being able to recover their money from sub prime borrowers in the USA and Northern Rock's problem of liquidity which the BoE's actions were designed to address. Simply getting the message that NR 'has a problem' lead to a 'rational panic' where nothing was to be lost by taking one's money out whilst there was nothing to be gained by leaving it in.
Peston's supercilious attitude and his clear enjoyment of trouble making in his moment in the spotlight was a less than edifying sight.
Peston should stop his rumour mongering and use of intemperate language - he has shown himself to be dangerous.
At the minimum, Peston should be suspended forthwith until his role in the affair has been investigated by a body independent of the BBC.
Peston - grow up. I would suggest you don't visit the North East for a very long time. I'm not sure the reception you would get up there.
7. crash bandicoot said...
Hotairmail -
You seem to think Robert Peston has some mighty power. I'm sure that he would be flattered to hear that he can influence so many people. In the wider scheme of things I myself am unable to distinguish the difference between defaults on subprime mortgages and Northern Rock being unable to pass on their five times salary mortgages. Nobody wants to bad bad debts these days