Rare sighting! Central Banker who actually understands economics

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

  1. http://www.bloomberg.com/apps/news?pid=20601068&sid=acpqBxJyx73k&refer=economy

    '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