Unparalleled levels of imprudent lending; corrupt banking practices; soaring inflation and rising unemployment; government bank bailouts and an economy dependent on increasing levels of debt to sustain growth. Sound familiar? It would have done to Briton’s in the 1830s.
John Redwood seems to argue that disaster for the global economy could have been averted if central banks had raised interest rates more slowly. That’s a big and quixotic claim.
To me, much the most interesting piece of news today is the bank of England’s; figures on “housing equity withdrawal”.
Fraser Nelson is falling back on the old tactic of urging the bond vigilantes to strike. He – and plenty of others on the right – did it when they wanted to be proved right about Labour’s supposedly ruinous borrowing in 2009/10. And now he’s doing it because he wants to be proved right about Mervyn King’s supposedly excessive relaxation over inflation
At their very impressive economic briefing this morning analysts from the Institute for fiscal Studies and Barclays suggested that inflation was more of a danger than the Treasury and the Bank of England might think – because so much of the potential ability of the economy to produce goods and services was wiped out in the recession.
No surprise that the Bank held interest rates at 0.5 per cent. The only good news, sort of, is that many City economists think they’ll be stuck around there for another year. If you have a tracker mortgage that is excellent news indeed. The bad news is that that will probably only happen if the Bank [...]
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