Reply to: Mervyn King - what a muppet

[doomage]

More of a puppet than a muppet really.

[Scoobos]

Agreed, shame the tories are cutting spending in the bad innit.

Let's all meet up and just throw the buggers out, I bet we can do it better and CHEAPER.

I mean, we've all already got Ipads haven't we? So theres 200,000 K saved right off the bat.

[BrilloPad]

In my view, a lot of what labour spent on was well overdue (I'm looking at education, interactive whiteboards etc) but the problem is that theres no moderation or if I dare - reasoned intelligent decisions in any of the governments in my time.

I kind of agree - but I am concerned that Labour spent too much on red tape (health and safety etc). The public can only afford so much government spend.

And they got their timing wrong. The time to do these spends is during the bad times not the good times.

[Scoobos]

Apparently they can't do things even to deal with their own remit - inflation super high and what they do to rates?

So even if King did all he could before he certainly in breach of his duty (in my view) now - frankly BoE should have used their own inflation figures that would factor in real estate, it's total utter BS that such connected element to banking was completely ignored.

If rates were 10%+ in late 2000 then there would be no such massive house pricing bubble, and best of all - Labour would be out of power because they would not be able to tax and spend so much because people would not be able to borrow money that easily. If Merv did all that then he'd actually deserve knighthood.

+ WHS

[Scoobos]

To counter Mr Brillo :

I think the problem is that politicians, especially from opposing parties - always want to differentiate themselves from the opposition.

If you're following a thatcherite (yes I know we had other PM's inbetween) cut cut cut, outsource, globalisation rubbish tenure - you're going to do the opposite and spend spend spend...

In my view, a lot of what labour spent on was well overdue (I'm looking at education, interactive whiteboards etc) but the problem is that theres no moderation or if I dare - reasoned intelligent decisions in any of the governments in my time.

Its about time we either admit that Corporate interests will ALWAYS call the shots, or bring in real direct democracy.

What we have now isn't (I hope with the coalition anyway) what any citizen seems to want.

[AtW]

The BoE cannot unilaterally do things outside its remit.

Apparently they can't do things even to deal with their own remit - inflation super high and what they do to rates?

So even if King did all he could before he certainly in breach of his duty (in my view) now - frankly BoE should have used their own inflation figures that would factor in real estate, it's total utter BS that such connected element to banking was completely ignored.

If rates were 10%+ in late 2000 then there would be no such massive house pricing bubble, and best of all - Labour would be out of power because they would not be able to tax and spend so much because people would not be able to borrow money that easily. If Merv did all that then he'd actually deserve knighthood.

[BrilloPad]

WHS - Talk about shooting the messenger.

No-one is saying Labour are innocent. They caused the majority of the current problems with their spend spend spend attitude. But Merv has to accept his share of the blame.

[BrilloPad]

You really haven't got a clue, have you!

The BoE had responsibilities left to it by HMG. The FSA was given responsibility for regulating banks, before King became governor. The BoE cannot unilaterally do things outside its remit.

The only independence in this context, if that was what it truly was, was in setting interest rates to keep inflation within a narrow band. That government policy obviously didn't work in the long term, but it is up to the government to change policy and put it right, not the BoE.

The perpetrators of that policy having gone, HMG and the BoE now seem to be keeping rates low to avoid an even bigger disaster for mortgage borrowers. You now moan about it, but if you were in charge and sticking your 2% onto rates, how would you explain that to the extra two million voters it puts into difficulties?

Anyway, I thought even you might know that Mervyn King has long critisised excessive bank bonuses and profits, which is the same thing you bang on about ad nauseum.

Sir Mervyn King sees 'steady, slow recovery' during 2012 - Telegraph

"With the benefit of hindsight, we should have shouted from the rooftops that a system had been built in which banks were too important to fail, that banks had grown too quickly and borrowed too much, and that so-called 'light-touch' regulation hadn't prevented any of this."

It would not take 2% rate increase to keep inflation under control. Lack of QE would probably have done it - if not rates of 0.75%.

For what he is paid, there is a responsibility to give people bad news. He should say "its your fault for borrowing too much". It would send a message that before we can spend we have to earn. At the moment he is destroying those people who have retired, most notably pensioners.

[OwlHoot]

Interesting, all this blame being attached to Mervyn King.

Since when has the governor of the BoE been running the country and determining economic policy? He does what he's told by our democratically-elected government.

WHS - Talk about shooting the messenger.

[Doggy Styles]

But he is supposedly independent?

If keeping inflation under control was his only job that he supposedly did during boom years then why is he failing to do it now?

The truth is that he failed both BEFORE and NOW. He'd still be failing long time in the future if he wasn't going to retire next year.

You really haven't got a clue, have you!

The BoE had responsibilities left to it by HMG. The FSA was given responsibility for regulating banks, before King became governor. The BoE cannot unilaterally do things outside its remit.

The only independence in this context, if that was what it truly was, was in setting interest rates to keep inflation within a narrow band. That government policy obviously didn't work in the long term, but it is up to the government to change policy and put it right, not the BoE.

The perpetrators of that policy having gone, HMG and the BoE now seem to be keeping rates low to avoid an even bigger disaster for mortgage borrowers. You now moan about it, but if you were in charge and sticking your 2% onto rates, how would you explain that to the extra two million voters it puts into difficulties?

Anyway, I thought even you might know that Mervyn King has long critisised excessive bank bonuses and profits, which is the same thing you bang on about ad nauseum.

[amcdonald]

Oi stop being muppetist!

Comparing muppets to some public sector fat cat is unfair

[AtW]

DC likes the way Merv sucks up to him.

It's part of the secret job description for the Gov.

[BrilloPad]

The truth is that he failed both BEFORE and NOW. He'd still be failing long time in the future if he wasn't going to retire next year.

+100

I expect if he could get another term he would. DC likes the way Merv sucks up to him.

[BrilloPad]

Interesting, all this blame being attached to Mervyn King.

Since when has the governor of the BoE been running the country and determining economic policy? He does what he's told by our democratically-elected government.

Good points. Of course Blair/Brown have alot of blame heaped upon them for the mess we are now in.

But it is supposed to be Merv's job to regulate the city and control inflation. He let both get totally out of control.

Also, as a gentleman, if he sees the government wrecking the economy he ought to speak out. He did not - to ensure he got another term.

[AtW]

He does what he's told by our democratically-elected government.

But he is supposedly independent?

If keeping inflation under control was his only job that he supposedly did during boom years then why is he failing to do it now?

The truth is that he failed both BEFORE and NOW. He'd still be failing long time in the future if he wasn't going to retire next year.