RAPID responses
Clueless Bank
[Re: Mervyn King should have hiked rates to deflate the bubble, yesterday]
I agree with you. Mervyn King has joined the long list of revisionist historians. To say he spotted the looming crisis is just not borne out by the facts and the Bank of England’s actions at the time. The loss of the Bank’s regulation division in no way compromised its ability to use responsible monetary policy, i.e. to raise rates. Even ordinary gossipers in City wine bars had a better grip on what was going on at HBOS and RBS at the time. And even property professionals know that, when average yields fall below 6 per cent, the bubble is about to burst, even if no one remembered to tell King and the Bank of England.
Matt Gash
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Russian bear
[Re: Time for Russia 2.0: Putin’s return promises an economic revolution, Monday]
As a Russian citizen, I couldn’t not comment on this article. It assumes that the key pillars of the Russian economy (natural gas, oil, coal and precious metals) will disappear within six years. They won’t. There’s little incentive for Vladimir Putin to reform. Similarly, he won’t tackle corruption or improve corporate guidance. Corruption in Russia is part of the mindset, and any behavioural changes will take at least a generation to happen. Corporate governance is different in Russia, especially the close relationship between corporate giants and government. Unfortunately there’s little evidence of any likely change.
Alexandra B
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TOP TWEETS
Mervyn King prompts the question: Who is actually capable of running the economy?
@polleetickle
King is now happy to ignore CPI on the upside, but wasn’t prepared to undershoot CPI to deflate the insane housing bubble.
@AndrewBeckett
Sarkozy’s problem is that he’s working to the theory that Le Pen is mightier than the sword.
@MichaelRosenYes
Non EU passengers moaning about a 45 minute wait to get through customs. Try going to America. Then you can moan.
@Lolly11070