Wednesday, October 27, 2010

We all did…………..

Bank of England didn't see the recession coming, says deputy governor Charles Bean

Charlie Bean has admitted that the Bank of England failed to predict the recession. In a frank speech to the Royal Statistical Society , the deputy governor of the Bank of England conceded that in August 2008 the Bank put the chances of an economic contraction of more than 1.5pc at just 1 in 20

Posted by mark @ 01:51 PM (4216 views)
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17 thoughts on “We all did…………..

  • the deputy governor of the Bank of England conceded that in August 2008 the Bank put the chances of an economic contraction of more than 1.5pc at just 1 in 20

    What a joke. Why are these idiots still keeping their jobs and their gold plated pensions?

    They basically missed the biggest financial event in the past 50 years!!!!

    Are they that dumb, OR was it ”Stalin” Brown threatening everyone to keep quiet?

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  • I dont know whats more scary, that they failed to predict it or that they still have jobs.

    Is Britain that screwed that the only people who can look after our finances are those who helped mess them up in the first place?

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  • Gross negligence, you’re all dismissed.

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  • mark wadsworth says:

    All the land value taxers saw it coming. I got to know a lot of them in 2006, and they all said the same thing, taken from the Gospel according to St Fred.

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  • Thecountofnowhere says:

    I’d suggest, in this case, they aren’t best placed to solve the problems that caused the recession

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  • To be charitable, you can say that putting the risks at one in twenty for a once in fifty year event, means they were not totally blind to the risk of an upset..

    BUT..

    Anyone who was remotely clued up should have realised that the flood of liquidity was highly suspect, and that the rapid increase in debt and house prices was not likely to have a happy ending..

    Trouble is, places like the BoE don’t recruit street-hardened businessmen to advise them..

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  • Crunchy knew, all along!

    How then, could anyone else fail. 😉

    The fool on the hill.

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  • You do have to laugh really. They failed to recognise the inflationary credit boom they created and then failed to spot the subsequent bust. They also said that they failed to understand the derivatives market and the collateralized debt markets’ impact on the wider economy.

    So erm … what exactly are these people in the Bank of England good at again?

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  • Paul – good question… About those 490,000 job losses, couldn’t make it 490,009 and save a bit more could we?

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  • two words… free banking.

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  • 5. paul said…So erm … what exactly are these people in the Bank of England good at again?

    They are payed for their engineering skills paul.

    BOE, Bank of Engineers.

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  • Two more equally relevant words … differential pricing

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  • Seems that good old Mr Bean has followed the example of his namesake.
    Does he not recall that a former govenor of the Bank had openly warned of such dire consequences before a treasury sub-committee?
    Perhaps it does not suit the current incumbents to admit that they had known what was coming but had not acted to avoid or at least ameliorate the obvious outcome of criminally lax monetary policy.

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  • To be fair to Mervyn King (who I regard as a dimwit) almost all the financial analysts missed this event too, despite it being glaringly obvious to the intelligent man in the street. What fools they are on the MPC.

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  • “So erm … what exactly are these people in the Bank of England good at again?”

    Convincing Cable and the other traitors that suddenly they should change all their policies.

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  • @7. Is that rhyming slang?

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