Tuesday, January 25, 2011
Speaking near Jarrow, Mervyn King says its almost as bad as the 1920s
Speaking near Jarrow Mervyn King proclaimed to a hushed audience that British households faced the biggest squeeze in living standards since the 1920s, families will see their disposable income eaten up as they â€œpay the inevitable priceâ€ for the failures of others. King emphasised that workersâ€™ take- home pay would end the year worth the same as in 2005, the most prolonged fall in living standards for more than 80 years. He then finished by saying he was unable to offer any imminent hope of a rise in interest rates in coming months and that â€œthose who behaved prudentlyâ€ would be among the biggest losers and with average take-home pay falling by 12 per cent during 2010 the Bank â€œneither can, nor should try to prevent further falls in lining standards.