Friday, March 6, 2009

Bloomberg’s headline is good enough for me…

BOE’s King 'Groping in the Dark' as U.K. Prints Money

Bank of England Governor Mervyn King, criticized for his initial response to the credit crisis, is now embarking on one of the biggest risks in British economic history. The central bank yesterday won authority to print as much as 150 billion pounds ($212 billion) and pump it into an economy facing its worst recession since World War II, after cutting interest rates close to zero. With markets clogged and economic activity shriveling, King can’t be sure the gamble will work. “We’re groping in the dark,” said Willem Buiter, a former Bank of England policy maker and now a professor at the London School of Economics. “Ultimately, we’ll know it works if the economy turns around, and that we won’t know for a couple of years.”

Posted by 51ck-6-51x @ 02:10 PM (823 views)
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2 thoughts on “Bloomberg’s headline is good enough for me…

  • “Ultimately, we’ll know it works if the economy turns around, and that we won’t know for a couple of years.” Says it all really; in a couple of years time we will be too far down the road whether this was the right thing to do or not, so what is the point.

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  • “While U.K. officials are at pains to deny similarities with the economic policies of Robert Mugabe’s Zimbabwe, where printing money has fueled hyperinflation, some economists argue that the Bank of England hasn’t much of a choice left”.

    This sort of comment was restricted to blogs only 4 months ago. Now Bloomber, one of the biggest and most influentioal news sites (and TV stations) has said it. If they were talking about another country, I would have a laugh. It’s not much fun when you live here.

    I think I’d like to do something about the situation – unfortunately someone has already done Mandy with a custard pie!

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