Daily Archives: February 16, 2009

The New York Times raises the intriguing prospect that the submarine crash in the mid-Atlantic was actually the result of a war game. Read more

Stephen Timms appears to have done enough to tamp down speculation about nationalisation and avert a run on Lloyds shares. But it still feels like the government is struggling to convince the market that it really does see full public ownership as a last resort. Privately, ministers make clear that they want another nationalised bank like a hole in the head. But their public statements sometimes seem too terse and contrived. Contrast their approach with that of Barack Obama, who gracefully addressed the question in a recent ABC interview:

MORAN: There are a lot of economists who look at these banks and they say all that garbage that’s in them renders them essentially insolvent. Why not just nationalize the banks? Read more

Chris Giles chronicles Mervyn King’s faltering response to the credit crunch and the fading power of the Bank:

Success certainly bred a certain arrogance when it came to views about how the economy worked. Dismissing as “an old shoe” the idea that asset prices should be taken into account when setting interest rates, [King] said those who worried about the effect on consumer spending of rapidly rising house prices were peddling “mindless regressions” and should instead think about the economics. “Housing does not determine consumption; there are more fundamental influences on consumer spending,” he insisted. Read more