Wednesday, August 8, 2012

Mervyn "Don't talk to me about life" King is worth 0%

Marvin King © fintag

News comments:
As a nipper I had the pleasure of dealing with the late Eddie George, the predecessor of the current Guv at the Bank of England.

George looked like a boxer. He was hard but fair. He endured some harsh economic times during his career and, as I have mentioned before, was with him saving the UK banking system in the early 1990s [Ed: You were an intern, if I recall correctly, who cleared out his ashtrays]. Behind closed doors of course. He was a doer and he did with limited powers.

King, who has morphed from the Fastest Milkman in the West to Marvin from the Hitchhikers Guide to the Galaxy, has unfortunately been a total disaster. What is the point of having him around? He likes to blame after the event, is more volatile with his predictions than Facebooks stock price, and refuses to listen when he should have listened (2008 and all that). He is the ultimate civil servant who should have been fired after letting RBS and Northern Rock crash and burn. The Bank of England is like and old boys club that looks down on the coal face that is Canary Wharf, as if bankers were still barrow boys in the East End (which in most cases is still the case, except it includes women now.)

King's role is to manage the money supply through interest rates and some money printing. That is it. Two simple things to do. So why should we take any notice of his gloom and doom growth forecasts? He acts like a second rate research analyst with dodgy data and a large audience [Ed: Sounds like you then]. (guardian). He loves thinking he is control when he is actually completely out of control.

His recent speech about his job being like that of a Team GB sports coach is quite frankly ludicrous. I want to hear ideas not opinions and analogies; see him lobbying the government and getting it to slash taxes and provide incentives for wealth creation; have him explain why inflation is still so high and why he cares more about the banks than pensioners who are living off pizza crusts; have him stop blaming the euro crisis and technocrats and the FSA and deliver something of value; perhaps he should stop having any media exposure at all. You know what I mean.

Given Boris Johnson will not stand as UK PM (independent) can I suggest he takes on the role of Bank of England governor? Even he could do a better job.

Today's shorts:
Bernanke follows King (bloomberg)

Super Mario will soon morph into King (marketwatch)

Today's longs:
StanChart starts WW3 (reuters)

Mervyn King's Mansion House drinks to be spiked with bath salts (latimes)