Rare sighting! Central Banker who actually understands economics

Discussion in 'Economics' started by Cutten, Sep 12, 2007.

  1. Cutten



    'Governor Mervyn King refused to relax the Bank of England's system for money-market lending, rejecting calls to provide commercial banks with more longer- term cash to reduce borrowing costs amid a global increase in the cost of credit.

    ``The provision of such liquidity support undermines the efficient pricing of risk by providing ex-post insurance for risky behavior,'' King said today in written testimony to the U.K. Parliament's Treasury Committee. ``That encourages excessive risk-taking, and sows the seeds of a future financial crisis.'' '

    Someone please send this to Bernanke, and cc it to Greenspan and Trichet while you're at it.
  2. props

    we'll see what happens 9/18