Mervyn King - what a muppet

[BrilloPad]

Mervyn King should have hiked rates to deflate the bubble | City A.M.

"The Bank could (and should) have jacked up interest rates at the height of the bubble" - no it could not. As its job was to target inflation. Which was fine. However, he should have been pointing out that there was a bubble and getting the government to burst it asap.

Of course the last 2 years have seen Merv ignoring inflation and keep interest rates low despite headline inflation at 5%+ and real inflation at 10%+.

Worst governor in 300+ years.

[AtW]

Yes he could do it OR if he could not he should have resigned publicly - he'd probably not gain the Sir bit and big pension pot but would have kept his reputation.

[Doggy Styles]

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.

[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.

[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.

[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.

[AtW]

DC likes the way Merv sucks up to him.

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

[amcdonald]

Oi stop being muppetist!

Comparing muppets to some public sector fat cat is unfair

[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.

[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.