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Sir Kunt's words are not worth the scraps of paper he sends to the government every month.


Bank of England governor was warned of Northern Rock collapse two years ago


Last updated at 23:29 15 December 2007

Concern: Gillian Shephard forecast trouble

Mervyn King

Mervyn King was alerted to Northern Rock's possible collapse two years ago

Bank of England governor Mervyn King was warned two years ago that Northern Rock was in danger of collapse ? but he brushed the concern aside dismissively.

Former Tory Cabinet Minister Gillian Shephard told Mr King she feared a 'day of reckoning' because Northern Rock was consistently offering cut-price home loans.

Mr King responded by telling her she did not understand banking and insisted there was nothing to worry about. The confrontation took place in 2005 when Mr King went to the House of Lords to address Conservative peers.

Read more: http://www.dailymail.co.uk/news/article-502590/Bank-England-governor-warned-Northern-Rock-collapse-years-ago.html#ixzz1PNROnuPT

Edited by OnlyMe
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Sir Merv......

Unsustainable Global imbalances during 7 yrs of plenty (to '07) turned to 7 lean years

Global rebalancing

UK - major rebalancing of demand and output which will take several years

Lower exchange rate required to achieve

MPC looked thru' first round effects of this revaluation- long list of reasons why this was preferable to nominal wage falls instead and the impacts of that

leading to lower funding rate costs

at some point rates will need to rise :rolleyes:

Oh, just watch it on BBC News 24

Edited by Red Karma
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Anyone got a video footage link, this is satire of the highest magnitude.

I've only got CNN where I am, so far nothing about it that I can see as the BoE are for the most part totally ignored outside of British news media

Here's a transcript of Merv's speech


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And I quote:

As the Treasury Committee concluded in February, “The Monetary Policy Committee and the Bank of England have repeatedly demonstrated their commitment to transparency."

You couldn't make this sh!t up. :D

Whenever these odious creatures make speeches like this, you have to think - who is the real audience, and what what do they have to gain (or lose) ?

It's just a coded warning to his bankster buddies that when the big one really hits in the next 18 months (think cash machines closing, capital controls, fx controls), that they need to be storing their personal wealth outside the banking system, so we need to do likewise.

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Bank of England governor Mervyn King was warned two years ago that Northern Rock was in danger of collapse ? but he brushed the concern aside dismissively.

This is a little disingenuous of the reporter. Of course King would be dismissive of someone alerting him in 2005... he was the governor of the Bank of England - and the Bank of England was stripped of its regulatory oversight role in the Bank of England Act 1998. King was probably the least relevant person to alert to the risks... I personally believe he was alerting others (specifically the Treasury) but had his hands tied.

Anyone wanting to warn someone relevant about Northern Rock had two choices... either they could talk to the FSA and hope that they'd take their responsibilities seriously - or take it to the chancellor (Brown) and first lord of the treasury (Blair) and tell them that engineering a boom by encouraging fraudulent lending by installing a toothless regulator just isn't cricket...

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Lies, lies and more lies.

The system is designed so wealth filters up to the elite.

Saving the banks transferred money from the tax payer to the elite.

They will do this again, when the velocity of money in the system bounces back.

I don't think it is designed to do that, more the system is an illusion of fairness to placate the masses. The money and power always filters up to the elite. The system can only be designed to redistribute it, but this won't happen.

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