Friday, 6 January 2017

Global Forecast Failure

There’s something going on at the Bank of England. Why else would the chief economist admit that its forecasts are as reliable as BBC weather forecasts, like the hurricane that never was in 1987, which killed 20 people and caused £1.5 Billion in damage? The BoE’s failure to spot that there would be a major financial crisis 8 years ago; because banks were buying and selling packages containing toxic loans, which they didn’t understand; is being compared in magnitude to the hurricane.
    Similarly, the BoE’s part in all the dire forecasts of disaster in the event of a Brexit vote is being compared to the BBC’s promise of a Barbeque Summer in 2009, which was rained off. The Bank’s failure confirms that the guff output by its boss, M. Carney, was more to do with politics than economics. But why is a top man at the Bank pointing that out? Is it the first rumbling of a putsch against the overpaid and overblown Carney?

No comments:

Post a Comment