Tuesday, January 1, 2013

MPs and central bankers have the means but not the courage to solve the current economic malaise

Survival of the zombies is bad news

In a rare press conference in 2007, I remember there was a suggestion from a journalist that rather than QE and credit loosening being the wisest option, fiscal tightening was the logical and prudent path. "You're not suggesting we raise interest rates are you?" was Mervyn King's precise answer. Fast forward to now and we should not pretend that the options presented for solving our economic malaise are pre-ordained - they are the result of carefully considered political strategies over economic ones. In exactly the same way as Mervyn King chose to get the teetotallers to pay for the party-hards' hangover medicines, so the zombie companies (and don't forget the zombie property assets, FT!) are political rather than economic outcomes.

Posted by paul @ 09:15 PM (1932 views)
Please complete the required fields.



One thought on “MPs and central bankers have the means but not the courage to solve the current economic malaise

  • Once again the continued habit of avoiding some short term pain is continuing to build into something truly horrifying.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>