Wednesday, 21 October 2009

Now Mervyn King supports Narrow Banking

Mervyn no doubt like many of us can see another bubble bursting in the not too distant future, and is now advocating the Narrow Banking that we have supported for some time.

Brown will do nothing; he is in the hands of malign advisors working solely in the interests of the megabanks. He is weak, vacillating and without the courage or vision to take any action.

Now is the time for this Rotten Parliament to redeem at least a part of its reputation in its dying months; if MPs demonstrated as much concern for the nation as for their personal wealth they could push the required measures through.

Don't hold your breath.

6 comments:

Henry Crun said...

Simple solution:

Abolish the FSA and return the power to oversee the banks to the Old Lady of Threadneedle Street.

sean lynch said...

You are so right, Brown won't do anything, he is living the remaining months of his office in la la land, he's alredy saved the world and civilisation as we know it.
The above post is also correct, the FSA is a worthless quango, the Conservatives are getting rid as a first act, let us get back to the old system that served us well for so long until these mad incompetent Stalinist wreckers broke it under the banner of state socialism.

Budgie said...

Damian Reece in today's Telegraph business section has some very sensible things to say on similar lines.

Maybe Brown's fear of repeating the 1930's depression has prevented a proportionate deflation which would have taken off the froth of the previous bubble. Of course this is what Thatcher did in the early 1980s, and was roundly cursed. Maybe she was right all along.

It also looks like the same mistake as post the dotcom bust - pumping money into a rotten system. We could end up with a worse bust than we have just experienced.

Brian E said...

We only have four banking groups in this country, two of which are controlled by the government (albeit not particularly effectively). For a country of our population, we certainly need more, if only to give the consumer some choice.
I cannot understand why the Monopolies and Mergers Commission have allowed this to happen; they make a great fuss about the supermarkets domination the food market where there are four major groups plus numerous smaller shops, yet are happy for four banks to have total domination of the UK banking business.
Although I'm no fan of Tesco, I'm just waiting for them to open the instore banking facilities that they have been talking about. If they decide to have them open for the same hours as the stores, it certainly could revolutionise things, particularly if, say, Sainsbury decided to follow suit!

Budgie said...

Brian E ...

You are right to imply that Lloyds should not have taken over HBoS. The Monopolies Commission was sidelined by Brown - yet another grievous blunder by the worst chancellor (and PM) ever. This was bad for Lloyds, bad for the public; and the taxpayer ended up bailing out HBoS anyway.

This failure was not strictly HBoS's fault either - they were completely exposed to Brown's property boom and bust. Unfortunately HBoS bosses believed Brown's boasting and paid the price (as did we).

Weekend Yachtsman said...

"pumping money into a rotten system."

Reminds me of the words of a wise boss I once had:

"Old System + more money = Expensive Old System."

See also under Service, Health, National - illegal immigrants, for the use of.