Wednesday, Jun 03, 2009
Blanchflower probably more irritating than Stuart Law shock
BBC: Rate setter warns of false dawn
I love the following quote, Blanchflower is clearly a complete tool
"My strongest contribution was to see what had gone on in in the US, realise that recession was coming and call it earlier than others. My weakness was that we didn't do this early enough.
He added that while "clearly" his colleagues had not been listening to him, the media and others had not believed him either.
Christ even his biggest failure was other people no seeing what he saw!!
No reference to how his monetary approach earlier in the cycle fueled the property/consumer/debt bubble.
Posted by bellwether @ 08:02 AM (822 views) Add Comment
20 Comments
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1. paul said...
Voting pattern of David Blanchflower (hopefully renders correctly):
Now what is really starting to cackle my gizzard is that the meeja seems to have a very short memory when it comes to how David Balnchflower has influenced the credit boom. While he was holding, house price inflation was DOUBLE DIGITS.
2. uncle tom said...
JU - agree - if the MPC had followed Danny Boy's advice, the credit bubble would merely have got bigger before it burst.
If the MPC had been focused on debt and money supply growth, as well as inflation; it would have been clear for the last decade that interest rates were dangerously low, and that a boom-bust cycle was in the making.
The incredible thing to me, is that this wasn't rocket science; you didn't need to be an economic genius to realise that there was a fundamental problem with the economy. There were plenty of wise heads sounding warnings, but government chose to ignore them..
3. icarus said...
Blanchflower as Cassandra, whose tragedy was that she could foresee disaster but couldn't prevent it because nobody would heed her warnings.
Strange how many buffoons see themselves as tragic figures.
4. crunchy said...
The Puppet Song.
Oh Danny boy, the pipes, the pipes are calling
From glen to glen, and down the mountain side
The summer's gone, and all the flowers are dying
'Tis you, 'tis you must go and I must bide.
Shame Danny Bleachflower did not tell Gordon, who only a short while ago was telling all us thicko's that we were not in a recession.
Brown shoots on the glen.
5. crunchy said...
8. mander said..."We have witnesed a period of stealing the money from future generations"
You could have written that many years ago. Like Fred the Shred and his bonus, prison is not in the contract.
6. japanese uncle said...
Utterly unreasonable/unjustifiable decision to cut base rate in 2005, was the histroic crossroad whether to calm down the bubble or even fuel it. Every time we hear incompetence defence or the statement by the quack (or the financial answer to Dr. Shipman) like this guy, we will have to remind the world of the 2005 CRITICAL IR CUT, in capitals at all times.
7. japanese uncle said...
icarus
Which is exactly why FSA staff were offered generous bonus.
8. crunchy said...
I think their job was to control inflation.
They did a great job whilst they got away with it.
The wonders of a globalised financial system, with Britian being the good boy for America! Pats on the head for pathetic Gordon.
9. uncle tom said...
ho-hum - we have a glitch in the system - looks like I'm time travelling..
10. mander said...
According to BBC David Blanchflower accurately predicted the recession. He did not predicted anything he was living in the US already in recesion.
We have witnesed a period of stealing the money from future generations. Too bad that the unborn will mis the opportunty to put people like David Blanchflower in prison.
11. icarus said...
UT @2 said 'There were plenty wise heads sounding warnings but the government chose to ignore them'.
In 2004 the FSA was concerned that Northern Rock and HBOS were too dependent on money market funds rather than more stable retail deposits.but according to an FT report 'the regulators concluded that they could not force the lenders to change their practices' and 'it was felt that it was too hard to say that Northern Rock's business model was excessively risky, and in any case banks following that strategy were PROFITABLE and GROWING'.
Maybe that's why the gov't chose to ignore warnings.
If the regulators 'could not force the lenders to change their practices' what are regulators for, and what CAN they do?
If you're going to allow schemes to continue because they're profitable and growing then Charles Ponzi's disciples could make a comeback
12. uncle tom said...
"Charles Ponzi's disciples could make a comeback"
That would be Madoff and Stanford I presume..
13. crunchy said...
It's very difficult if not impossible to directly regulate a private business who's obvious focus is on profit.
To aid them in that pursuit is another story altogether. FSA is a farce. A mere distraction.
14. icarus said...
@12 - they're toast - once a Ponzi scheme is over there's no way back, but with regulators like these there'll be other such schemers.
@13 - you're saying regulation of the financial sector is impossible?
15. crunchy said...
14. icarus Not impossible, but for every rule made there will be a scammer ready to break/twist it.
A career criminal is difficult to stop unless locked up for life. A free market has it's pros and cons.
No pun intended!
16. refusetobuy said...
Blanchflower is needed because it's nice to have someone on the MPC to blame.
17. A Saver said...
I am utterly sick of paying licence money to the BBC for putting out drivel like this.
I am not in favour of even more state interference in our lives but they should be stopped.
18. James8035 said...
Please BOE dont start having an honest policy i am just about to sell up. I need a three bedroom house now as family is growing, just let me sell my flat first
19. 51ck-6-51x said...
I believe DB actually does think that if the committee had followed his advice we would be in a better situation now, which is pretty worrying.
20. Urbanbear said...
If he wasn't such an imbecile, he would have voted to increase rates while the boom was getting out-of-hand, then maybe the economy would have moderated, attracted more investment money to the UK, maybe reduced government excess, and reduced the speed and depth of the collapse! It would also have helped if the inadequate, or crooked, FSA had forced UK banks to reduce their risk exposure.