Tuesday, November 06, 2007
King on the Rock
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Mervyn King has given an interview to the BBC about the Northern Rock affair and the credit crisis, which is reported here. The story from the interview is that Alistair Darling, not King, blocked the takeover of Northern Rock by Lloyds-TSB before the Rock's troubles became fully public. This, in turn, has been interpreted as the governor trying to shift the blame. That was not my reading of the interview, which was that Darling had the final say but the decision he took was on the basis of King's strong recommendation.

Comments

I think Darling must have relied on King for advice and I am sure Brown was involved too! I dont think King is really responsible for this mess, I hope he doesnt resign.

Posted by: JohnofScribblesheet at November 6, 2007 11:17 AM

Mervyn is the only person who has done the RIGHT thing in this mess.

Darling hasn't a clue what he's supposed to be doing and the FSA.....what a shambles they've been - a huge embarrassment!!!

Posted by: Kev M at November 7, 2007 06:49 PM

Dear David

"between a rock and a hard king"

The recent events regarding the bank run however shocking they may appear, have been possible due to specific socio economic engineered circumstances that have been allowed or i dare say put in place.
Ask yourself how do you create non inflationary growth in GDP, without manufacturing or any meaningful export at all?
No problem at all! you borrow, I borrow, the government borrows. from where..... from the banks who have borrowed against their deposits 5x over.
All that has happened that some people wanted their money back somewhere in the chain.
Mervyn King the governor of the the Bank Of England is doing the job that he is appointed to do......and has always done so very admirably.(against consensus if need be)
I have consistently written in to your site with very to the point opinion and facts like the warnings on loose money supply, excessive government expenditure, etc. This will be my last contribution....since all the points I have made have become reality!!.....unfortunately for all of us. (recession beckons)

Best wishes

Arik Schickendantz

PS when do you think the POUNDing will start?

Posted by: arik schickendantz at November 8, 2007 12:37 AM
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