Amid the orchestrated adulation for the newly-appointed Governor of the Bank one should not gloss over the shameful fact that once again the Government has failed to find a suitable candidate among the vast number of highly educated and experienced economists and other professionals here in the UK. Add the fact that a highly excessive pension 'contribution' is made to an already high basic salary (while huge numbers of hard-working public sector employees see their pension packages cut in unilateral fashion) and one can only wonder about the mental state of the decision makers that participated in this mock selection process. With respect to Carney's achievements in Canada one has to say that managing the affairs of a small country (by population) during a global resource boom that supports its economy while the banking system is by tradition a closely controlled oligopoly cannot have been all that difficult. And the conspiracy theorists will have a field day and argue that another Goldman Sachs 'clone' has obtaining vast discretionary powers in an unelected position.
P.S. - those who still think that Carney will save the UK may wish to look at this
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1 comment:
Onw wonders if this appointment has to do with the way the Canadian Banking Model managed to avoid the catastrophe of the Americana Banks.
The way the Fed behaved was going to produce that same crisis without Sub-Prime.
The Canadian Central Bank had more going for it and it did not raise rates quite so fast.
More going for it? Incomes were rising faster.
When I tested the "% of income" used for mortgage finance during that period I found that the Canadian borrowers' higher incomes growth gave them the edge - it was just enough to scrape by as interest rates rose somewhat more slowly.
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