With Seumas Milne, which is a bit worrying.
Quite why a man who presided over disaster in the financial sector, and damagingly opposed early cuts in interest rates as the crisis deepened, should effectively be allowed to dictate fiscal policy to elected politicians is something of a mystery.
Why are we allowing Gordon Brown to continue?
That only problem was the our dear Seamus was talking about Mervyn King.
It was a poor article that added nothing to the debate on the economic crisis.
Did Gordon Brown oppose early interest rate cuts?
I disagree that interest rate cuts have been a good idea for this crisis. Lack of credit is hurting business, caused by the banks getting themselves into a mess and then being unable or unwilling to lend more. Given a mismatch between insufficient supply of, and excessive demand for, credit, how does lowering interest rates help? Higher rates would have encouraged more saving to recapitalise the banks while also reducing demand on the borrowing side. The fact that higher interest rates would also constrain the reckless spendthrift policies of the government is a bonus.
@LFAT, not sure about you, but I reckon the fact that Tory policy on the recession appears to be based on the glorious and successful activities of the Hoover administration is probably one that needs mentioning more often…
It was a poor article that added nothing to the debate on the economic crisis.
It was by Seamus Milne, your comment was unneccesary
john b – Hoover’s administration was rather like Bush’s. People try to paint it as non-interventionist now, but it was in reality very interventionist.
Both Hoover and FBR’s economic policies were disasterous and sadly the same mistakes are being repeated again.
John B – “I reckon the fact that Tory policy on the recession appears to be based on the glorious and successful activities of the Hoover administration is probably one that needs mentioning more often…”
Perhaps you might care to look at something that Tim wrote on the subject – it appears to be Darling and Brown who are folowing the policies of Hoover
https://www.timworstall.com/2008/12/11/oh-dear-polly-oh-dear-3/#more-5267