Monday, November 26, 2012

Ann Pettifor — Mark Carney's 'shock' appointment means more of the same

Osborne's choice for governor of the Bank of England will do nothing to prevent the next collapse of the financial system...

Carney is a central banker steeped in the culture and practices of Goldman Sachs's investment banking arm. Before becoming Canada's central bank governor, he spent 13 years with Goldman Sachs in its London, Tokyo, New York and Toronto offices. He held a range of senior positions. The most significant was as managing director of investment banking.
In a speech made recently Carney made the right noises. He complained of "a system that privatises gains and socialises losses" and endorsed the approach that sets capital and leverage ratios for banks. He's even commended the Occupy movement for being "constructive".
But there is nothing in his speeches that indicates that he will help give Britain's real economy the protection it needs from its over-mighty – and still very dangerous – banking sector. Nothing, in other words, that indicates the real economy – the productive sector – will be given priority over the City's preference for reckless global speculation.
The Guardian (UK)
Mark Carney's 'shock' appointment means more of the same
Ann Pettifor | Director of Prime: Policy Research in Macroeconomics and a fellow of the New Economics Foundation


Ralph Musgrave said...

On the other hand Canada had a negligible number of bank failures both in the 1930s and in the recent crisis relative to the US and Europe. So perhaps Canada has something to teach us.

paul meli said...

Canada misunderstands money just a badly as every other country…what makes you think they will avoid failure? The signs are there that all is not well.