Mervyn King should step down

His one and only instruction from Gordon Brown was to ensure inflation stayed below 2% in spite of Labour's policies. I would say he's done a sterling job. Why do you criticise him?

Interesting that a critical time when interest rates were historically lowered, he was the one dissenting voice to maintain the rate. That lowering of rate probably gave the housing market a further boost which has caused much of the economic downfall.

Have you ever thought his comments may be true? Why do you think a remarkably low base rate of 1/2% is appropriate?

You seem to be adding quite a few things I didn't say to my post.

I criticise him because he seems to lack the understanding of the cycle which engulfs us. He seems to lack any imagination about how to think outside the box.

If you read that link which I posted, you might understand that his comments have been counter-productive, and that we need to be looking for a way out of this recession. He doesn't seem to be capable of that.

I discounted the article because only interested parties, namely scientists, are critical of Mr Kings opinions. I don't see any economists being critical?

I am an interested party. I live in the UK (my sig can be discounted because I am now retired). However, you will see economists waking up in due course.

If sanity had prevailed, interest rates would have been gradually increased several years ago to deflate the massive expansion of personal and mortgage borrowing.

The Government's answer to 'our nation's recovery' is to re-inflate the bubble. King is merely and correctly pointing out we can't afford the Government strategy.

Toom

Yeah, depression is so much better.

John

In message , Toom Tabard writes

He may be right, judging by the murmuring about building societies having taken risks with commercial loans. If they start to tumble, and one or two have been swallowed up, what next?

I am also interested in the economy. I was talking of people with vested interests regarding science.

Science takes a long time to covert to technology, and again a long time for technology to mature into a real product. The sentiment may be great but in reality the pay back time will have little immediate effect on the economy. Far better bet is to improve the current road system. Infrastructure investment would have a quicker effect.

The issue of choice was fully avoidable - it just needs the ability to recognise the difference between 'an unprecedented period of sustained economc growth', and an unprecendented period of ever-increasing consumer debt with all the sustainability of a pyramid selling scheme. Brown is/was incapable of telling the difference.

Going back to the latter will be even less sustainable.

Toom