Governor of BOE admits "It was the finance sectors fault"
Discussion
I am rather surprised this hasn't been posted up already here on PH, given that the story has been online for most of the day now... surely there can't be bias on these fair boards?
So, the Governor of the Bank of England says the economic crisis and the current problems are the fault of the financial sector.
But surely that is contrary to the myriad of posts on PH clearly arguing that it was/is the fault of those public sector scum, the chavs, the benefit scroungers, the politicians (Ok - I'll concede they were a big part of the problem too), and everyone who ever bought a house or had a credit card?
If I have read thousands of posts right surely the last people to blame are the bankers?
So clearly the Governor of the Bank of England is an idiot. And he said it in front of the Unions too - who we all know are worse than 'Ol Nick himself.... whoops!
http://www.bbc.co.uk/news/uk-politics-11300291
So, the Governor of the Bank of England says the economic crisis and the current problems are the fault of the financial sector.
But surely that is contrary to the myriad of posts on PH clearly arguing that it was/is the fault of those public sector scum, the chavs, the benefit scroungers, the politicians (Ok - I'll concede they were a big part of the problem too), and everyone who ever bought a house or had a credit card?
If I have read thousands of posts right surely the last people to blame are the bankers?
So clearly the Governor of the Bank of England is an idiot. And he said it in front of the Unions too - who we all know are worse than 'Ol Nick himself.... whoops!
http://www.bbc.co.uk/news/uk-politics-11300291
t the UK is in is down, in very very very large part, to Brown's borrowing. Maybe the banks could have been more tightly regulated, but they weren't borrowing to support NuLabs policies.I thought it was good that he said it, and that he wasn't the capitalist ogre that some of the delegates had made him out to be. Seeing Bob Crow whinging about the ivitation to speak made me hate him even more.
I'm not left wing by any stretch but pinning the blame totally on Labour whilst ignoring the huge impact the collapse of the sub-prime market had on both the banks and, by extension, the economy is a little skewed.
I'm not left wing by any stretch but pinning the blame totally on Labour whilst ignoring the huge impact the collapse of the sub-prime market had on both the banks and, by extension, the economy is a little skewed.
It was all Clintons fault he made the banks lend to people that couldn't pay it back. The banks didn't want to but he made them act against their shareholders interests and lend to poor people living in swamps and trailer parks and up trees.
In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
What's being said though...the financial sector 'caused' the crunch after Clinton lit the blue touchpaper, and then night followed day - there's an outline of the sequence of events here
Clearly this meets the description 'economic problems'.
The UK's deficit and national debt positions which require action, properly described as correcting unaffordable spending decisions by incompetents but which The Guardian will call cuts, are due to Bliar and particularly Brown being out of their economic depth standing in a car park puddle. IIRC the trend in both deficit and debt headed north around 1999/2000 which is long before the crunch but certainly accelerated more recently due to decisions made by Brown.
Clearly this meets the description 'economic problems'.
The UK's deficit and national debt positions which require action, properly described as correcting unaffordable spending decisions by incompetents but which The Guardian will call cuts, are due to Bliar and particularly Brown being out of their economic depth standing in a car park puddle. IIRC the trend in both deficit and debt headed north around 1999/2000 which is long before the crunch but certainly accelerated more recently due to decisions made by Brown.
turbobloke said:
What's being said though...the financial sector 'caused' the crunch after Clinton lit the blue touchpaper, and then night followed day - there's an outline of the sequence of events here
Clearly this meets the description 'economic problems'.
The UK's deficit and national debt positions which require action, properly described as correcting unaffordable spending decisions by incompetents but which The Guardian will call cuts, are due to Bliar and particularly Brown being out of their economic depth standing in a car park puddle. IIRC the trend in both deficit and debt headed north around 1999/2000 which is long before the crunch but certainly accelerated more recently due to decisions made by Brown.
I think there is a bug/missing slides with that presentation. It doesn't mention central bankers cutting rates to ludicrous levels causing investors to search for yield elsewhere.Clearly this meets the description 'economic problems'.
The UK's deficit and national debt positions which require action, properly described as correcting unaffordable spending decisions by incompetents but which The Guardian will call cuts, are due to Bliar and particularly Brown being out of their economic depth standing in a car park puddle. IIRC the trend in both deficit and debt headed north around 1999/2000 which is long before the crunch but certainly accelerated more recently due to decisions made by Brown.
Edited by NoelWatson on Wednesday 15th September 15:42
el stovey said:
It was all Clintons fault he made the banks lend to people that couldn't pay it back. The banks didn't want to but he made them act against their shareholders interests and lend to poor people living in swamps and trailer parks and up trees.
In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
Really? I'm trying hard not to come across as a troll but I'd be interested to see your sources for that as I've not heard it before. At the start of the crisis I read article in Time (I think) that placed the blame on banks trying to expand in a saturated market, and lowering their criteria to allow higher risk loans to be approved.In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
Alfa numeric said:
el stovey said:
It was all Clintons fault he made the banks lend to people that couldn't pay it back. The banks didn't want to but he made them act against their shareholders interests and lend to poor people living in swamps and trailer parks and up trees.
In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
Really? I'm trying hard not to come across as a troll but I'd be interested to see your sources for that as I've not heard it before. At the start of the crisis I read article in Time (I think) that placed the blame on banks trying to expand in a saturated market, and lowering their criteria to allow higher risk loans to be approved.In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
http://contraries.net/hidden-clinton-success-story...
NoelWatson said:
turbobloke said:
What's being said though...the financial sector 'caused' the crunch after Clinton lit the blue touchpaper, and then night followed day - there's an outline of the sequence of events here
Clearly this meets the description 'economic problems'.
The UK's deficit and national debt positions which require action, properly described as correcting unaffordable spending decisions by incompetents but which The Guardian will call cuts, are due to Bliar and particularly Brown being out of their economic depth standing in a car park puddle. IIRC the trend in both deficit and debt headed north around 1999/2000 which is long before the crunch but certainly accelerated more recently due to decisions made by Brown.
I think there is a bug/missing slides with that presentation. It doesn't mention central bankers cutting rates to ludicrous levels causing investors to search for yield elsewhere.Clearly this meets the description 'economic problems'.
The UK's deficit and national debt positions which require action, properly described as correcting unaffordable spending decisions by incompetents but which The Guardian will call cuts, are due to Bliar and particularly Brown being out of their economic depth standing in a car park puddle. IIRC the trend in both deficit and debt headed north around 1999/2000 which is long before the crunch but certainly accelerated more recently due to decisions made by Brown.
Edited by NoelWatson on Wednesday 15th September 15:42
John Redwood has been on the money consistently with this. From his blog;
'The Governor of the Bank of England today becomes a politician. We are told in advance of his audience hearing that he will offer to protect the public from the banks. That is not what I want to hear.
The Governor is the senior unelected official in economic policy. He and his institution are responsible for interest rates and the rate of inflation. He should read the cycle well, and report and defend his actions on monetary policy as required. He should also act in private as an honest and fearless adviser to the Chancellor, the senior elected official, who has overall responsibility for economic policy, and who has the power to change the Bank and its functions.
I want to hear today from the Governor answers to the following questions:
1. Why did the Bank so misread the cycle 2005-9? Why did it encourage or allow dramatic overheating, when the smell of scorching was powerful enough for outsiders to notice it? Why did the Bank then lurch to freeze the monetary and banking system, so we had many banks in trouble? Why couldn’t the bank feel the icy blast in 2007-8 which brought down Northern Rock and undermined others? Why did they ignore the strong advice some of us gave to ease money markets earlier to avoid the worst of the crash?'...........
TheFlyingBanana said:
I am rather surprised this hasn't been posted up already here on PH, given that the story has been online for most of the day now... surely there can't be bias on these fair boards?
So, the Governor of the Bank of England says the economic crisis and the current problems are the fault of the financial sector.
But surely that is contrary to the myriad of posts on PH clearly arguing that it was/is the fault of those public sector scum, the chavs, the benefit scroungers, the politicians (Ok - I'll concede they were a big part of the problem too), and everyone who ever bought a house or had a credit card?
If I have read thousands of posts right surely the last people to blame are the bankers?
So clearly the Governor of the Bank of England is an idiot. And he said it in front of the Unions too - who we all know are worse than 'Ol Nick himself.... whoops!
http://www.bbc.co.uk/news/uk-politics-11300291
Have you actually listened to the speech?So, the Governor of the Bank of England says the economic crisis and the current problems are the fault of the financial sector.
But surely that is contrary to the myriad of posts on PH clearly arguing that it was/is the fault of those public sector scum, the chavs, the benefit scroungers, the politicians (Ok - I'll concede they were a big part of the problem too), and everyone who ever bought a house or had a credit card?
If I have read thousands of posts right surely the last people to blame are the bankers?
So clearly the Governor of the Bank of England is an idiot. And he said it in front of the Unions too - who we all know are worse than 'Ol Nick himself.... whoops!
http://www.bbc.co.uk/news/uk-politics-11300291
Telegraph report: http://www.telegraph.co.uk/finance/economics/80044...
Nice to see they are using the time, paid for by their union member's subs wisely. Retreads.
The Article said:
The 62-year-old (Mr King)faced minor protests from some banner-waving delegates and a walkout by the 12 delegates from the Rail Maritime and Transport union delegation who retreated to their exhibition stand to watch children's TV.
Nice to see they are using the time, paid for by their union member's subs wisely. Retreads.
turbobloke said:
Alfa numeric said:
el stovey said:
It was all Clintons fault he made the banks lend to people that couldn't pay it back. The banks didn't want to but he made them act against their shareholders interests and lend to poor people living in swamps and trailer parks and up trees.
In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
Really? I'm trying hard not to come across as a troll but I'd be interested to see your sources for that as I've not heard it before. At the start of the crisis I read article in Time (I think) that placed the blame on banks trying to expand in a saturated market, and lowering their criteria to allow higher risk loans to be approved.In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
http://contraries.net/hidden-clinton-success-story...
However, have you get anything that isn't such a blatantly biased blog?
Colonial said:
turbobloke said:
Alfa numeric said:
el stovey said:
It was all Clintons fault he made the banks lend to people that couldn't pay it back. The banks didn't want to but he made them act against their shareholders interests and lend to poor people living in swamps and trailer parks and up trees.
In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
Really? I'm trying hard not to come across as a troll but I'd be interested to see your sources for that as I've not heard it before. At the start of the crisis I read article in Time (I think) that placed the blame on banks trying to expand in a saturated market, and lowering their criteria to allow higher risk loans to be approved.In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
http://contraries.net/hidden-clinton-success-story...
However, have you get anything that isn't such a blatantly biased blog?
Back to topic - our good old unoins - and it amazes me how so many workers can be hoodwinked into parting with their hard earned to subsidise the lifestyle of the union officials. I understand the conept of the unoins - although recent changes in Euopean H&S and employment law make them less relevant now than ever - but to feel that those knuckle-dragging, grunting, semi-literate morons are 'good representatives' to have is a step too far.
Digga said:
Colonial said:
turbobloke said:
Alfa numeric said:
el stovey said:
It was all Clintons fault he made the banks lend to people that couldn't pay it back. The banks didn't want to but he made them act against their shareholders interests and lend to poor people living in swamps and trailer parks and up trees.
In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
Really? I'm trying hard not to come across as a troll but I'd be interested to see your sources for that as I've not heard it before. At the start of the crisis I read article in Time (I think) that placed the blame on banks trying to expand in a saturated market, and lowering their criteria to allow higher risk loans to be approved.In our country, it's got nothing to do with any lack of regulation and irresponsible lending or credit default swaps. It's all old Bill Clinton's fault, nobody here in our financial sector was involved in any way at all.
http://contraries.net/hidden-clinton-success-story...
However, have you get anything that isn't such a blatantly biased blog?
Pressure from Clinton's equality guru on Fannie and Freddie in the context of legislation cannot be seen as bias but as a part of the historical record, as are the ninja mortgages that resulted which were packaged and re-sold around the world leading to build up of toxic debt in various nations' banks and ultimately to the crunch. If the crunch was merely imaginary, and comment on it nothing but bias in blogs, then there would be some substance in the above blog remark, but given the historical record this is no more than another instance of failing to spot the difference between fact and opinion.
Edited by turbobloke on Thursday 16th September 10:06
I think it was caused, in very great part, by people borrowing way out of their depth for houses which caused massive house price inflation, which caused still more to leap aboard what many believed was a one way trip. Ie, "if we don't buy now even though we can't afford it, houses will only get dearer. And if we find we can't keep up with the mortgage we can always sell and WILL have made a profit anyway". So they buy so houses go up, so they buy, so houses go up. Add in Buy To Let (cue mass "They're not building any more land"/"Houses double in value every seven years on average"/"This time next year Rodney...")
Linked in to that was the immense feeling of wealth that ordinary people had at finding their house had increased massively in value as a result of the above. Many saw their house value rising by £100K as meaning they'd somehow "made" £100K, weren't they clever? So they went out and spent some or all of it (via equity release), or just borrowing generally backed by the reassurance of their house value (ever heard anyone say "well I've got a car loan, bank loan, credit card debt etc, but hey, my house has gone up by £50K so I'm still ahead")? I have.
Now whether that was the banks fault for making stupid loans available, or the borrowers fault for borrowing way beyond their means, is another debate.
Linked in to that was the immense feeling of wealth that ordinary people had at finding their house had increased massively in value as a result of the above. Many saw their house value rising by £100K as meaning they'd somehow "made" £100K, weren't they clever? So they went out and spent some or all of it (via equity release), or just borrowing generally backed by the reassurance of their house value (ever heard anyone say "well I've got a car loan, bank loan, credit card debt etc, but hey, my house has gone up by £50K so I'm still ahead")? I have.
Now whether that was the banks fault for making stupid loans available, or the borrowers fault for borrowing way beyond their means, is another debate.
Colonial said:
However, have you get anything that isn't such a blatantly biased blog?
CNN good enough for you ..http://money.cnn.com/2009/07/22/news/companies/fan...
Fannie & Freddie took over $100bn in 2008. It's not even a bailout - more akin to a blank cheque.
Ari said:
Now whether that was the banks fault for making stupid loans available, or the borrowers fault for borrowing way beyond their means, is another debate.
Or Clinton's fault for making demands of the US banks which spawned the huge credit bubble which then spilled over into the UK banking industry, thereby 'pushing' credit at those less than suitable to service the debt or spend the money released.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff