Wednesday, Aug 12, 2009
At last something resembling the truth about the gravity of the economic situation
Telegrapth: Recession will be the worst in modern history, Bank of England confirms
Mervyn King, the Bank of England Governor, declared that Britain is facing the worst recession in modern history and expects the economy to contract more severely than in the 1930's.
Posted by enuii @ 11:44 PM (1500 views) Add Comment
19 Comments
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1. vacuouspolitician said...
Penfold and his cronies should hang their heads in shame. Bumbling useless old dinosaur. He has totally lost control of the situation and unfortunately ordinary people will pay the penalty for this bumbling oafs incompetence while he writes his stupid letters every month. Big deal! Perhaps he should write one final letter - hopefully his resignation! Blair/Brown/Maddy and all those other awful politicians must take the lions share of the blame in setting policy...but it is this so-called "Doctor" King who is equally to blame, if not more to blame for the situation ordinary people now face. He is the so-called "expert" and such a highly regarded fellow...even someone with half a brain cell could see a run-away housing market serves nobody and is doomed to fail. He and his cronies should have called time on this bubble years ago. I wouldn't trust this man to run a bath let alone a major economy.
2. gone-to-colombia said...
Yeah but this wont stop house prices going up....................................will it !
3. mystie010 said...
"As a result, the Bank is expected to leave borrowing costs on hold at their current record low rate of 0.5 per cent well into next year, if not longer"
Ah but do we really believe them on this issue of interest rates? Or is this just another attempt to scare us all into investing in property? Before the credit crunch we were all fed the line that interest rates were going to go up and were likely to stay high for a while; and look what actually happened. I don't believe a word that comes out of their mouths! Double digit rates middle of next year? - thoughts anyone...
4. Shergar75 said...
still think house prices will probably stay as they are or mabey fall another 10 percent. what a mad situation we should be building our way out of this recession what better way of keeping people employed and helping out with a major problem being a lack of affordable housing..I dont know what good all this pumping money into the economy is doing didnt a huge load of it go missing last week that didnt surprise me in the least..
5. quiet guy said...
"Mr King added: “ What we have to do is to recognise that the banking sector is still in a very bad way. It will take several years for it to repair its balance sheets, to get back to the point when it will be weaned off very large amounts of public support and in a position again to lend normally.” OK. The BoE has just announced its intention to blow as much money as is necessary to keep bankers in clover. I give up. No more messing about with real work for me! What is the best way to get into the banking 'industry' ?
6. Rotoman said...
@quietGuy
You really don't want to get into banking, its a nightmare at present.... and your best bet, move to India and join one of the companies that the UK publicly owned banks are outsourcing their services to, while jobs here disappear by the thousand ...
7. vacuouspolitician said...
@2 ?
@3 No. They are a bunch of liars. Not to be trusted at all. Hey and don't forget the environment...big buzz word in 2007 (pre-credit crunch)...don't forget no more travelling for poor people...more taxes coming your way...save the planet...carbon footprint...yak yak yak..then the credit crunch came...hmmmm...not on many of these peoples agendas now is it!
@4 It's enough to make yer proud to be British!
8. uncle tom said...
I'm surprised this story hasn't had more attention. Our Merv is effectively saying that the Treasury's projections are in cloud cuckoo.
While many commentators have been very skeptical about the budget forecasts, here is the governor of the BOE confirming that they are indeed wildly optimistic.
Should be big news...
9. hpwatcher said...
I'm surprised this story hasn't had more attention. Our Merv is effectively saying that the Treasury's projections are in cloud cuckoo.
He is admitting complete failure...so why should anybody listen to him?
10. alan said...
Thanks UT,
I couldn't see how King's downbeat view of the economy linked with Darling's optimistic financial projections. They don't. I expect this will be picked up untill the party political conferences. It seems everyone's on holiday, right now.
11. Bystander said...
..................and yet France and Germany have come out of recession already. I thought we were uniquely placed to weather thif financial storm??????
12. britishblue said...
I agree with uncle Tom @6. This is big news and should be taken very seriously. Time and bad news seem to anethetise peoples minds. Imagine if the Govenor of the Bank of England had made these statements two years ago. People would have called for his head for 'talking us into a depression.' On the basis that he knows more than we do and it doesn't win him any freinds by being so negative I would take this seriously.
13. drewster said...
This was reported by the BBC too - I heard it on the radio last night. It is being taken seriously. They also mentioned that unemployment could rise to four million!
14. bellwether said...
To what extent are these soundbites to gateway further policies targeted at weakening sterling. With interest rates at zero and QE in full effect, I'm guessing BOE and Govt did not expect to see Sterling at close to $1.70.
15. mander said...
Mr King said that the Bank was doing everything it could to ensure that Britain did not follow in Japan’s path and succumb to a “wasted decade” of economic stagnation.
Dear Mr King,
House prices are double. Same thing done Japan to protect the inflated wealth and after ten years houses finally are correctly priced. Britain can not wait 10 years.
16. techieman said...
Nope nope you are all wrong because Peter Jones that lanky dragons den bloke said there was a really small chance of a recession and IF there was one it would only last a couple of quarters and be really mild. And hes is a multi millionaire smoothy dudey!
17. techieman said...
in case you are wondering what i am on about..... try these two:
http://www.housepricecrash.co.uk/forum/index.php?showtopic=90313 (october 8th 08) wish i had the iplayer then
http://www.growthbusiness.co.uk/news/business-news/1061807/we-are-out-of-the-recession-says-jones.thtml (June 30th 09)
nice one pete - can i have some Reggae Reggae sauce on that please!
18. house said...
@1, To be fair Mr M King did warn on home prices ie. the headlines read "Bank Chief's warning on home prices, Homes head for a fall". This appeared in the Daily Mail newspaper front page on 28th March 2007. But I understand that he was heavily criticised for making this comment.
Does anybody else remember seeing this headline?
I have a copy of it for my files. To be honest I took comfort from the headline thinking to myself at least he is being honest. However, the events since then, I do know whose making it is.
Any comments !!
19. vacuouspolitician said...
house @18
Yes one date 04/08/2005. It confirmed to me what a bumbling oaf Penfold was. It was a cue for the next phase of HPI.