Monday, Jul 21, 2008
Excellent article from the weekend FT
FT: Crashes, bangs and wallops
“Each separate panic has had its own distinctive features, but all have resembled each other in occurring immediately after a period of apparent prosperity, the hollowness of which it has exposed. So uniform is this sequence, that whenever we find ourselves under circumstances that enable the acquisition of rapid fortunes, otherwise than by the road of plodding industry, we may almost be justified in auguring that the time for panic is at hand.”
Posted by james @ 10:27 AM (270 views) Add Comment
3 Comments
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1. James said...
Notable for the comment - exposing the dilemma that a lot of posters here singularly miss - that:
"I was on the Monetary Policy Committee when house prices were roaring away in the three years to 2006, and I can remember thinking: “If our mission was to check house-price inflation (which of course it was not), where would interest rates have to go?” It was very hard to guess at what constituted the sustainable price of housing over the long term. Would we be prepared to knock industry for six simply because we felt that house prices were getting a bit too sporty? I don’t think so."
2. paul said...
Indeed James.
Lambert inadvertantly shows his own complacency to have contributed to the problem. Perhaps he could now repent by offering to repay his gold-lined pension to the state to offset the financial shock which his incompetence brought about?
3. James said...
So, he *should* have knocked industry for six, paul? Watch out, most posters on here like to call those the 'real' jobs, making stuff, instead of 'p1ssing about in the City'...