Sunday, March 21, 2010

Bank of England deliberately fuelled consumer boom

Ex-Governor George says Bank deliberately fuelled consumer boom

By Jane Padgham

Wednesday, 21 March 2007

The Bank of England deliberately stoked the consumer boom that has led to record house prices and personal debt in order to avert a recession, the former Bank Governor Eddie George admitted yesterday.

Lord George said he and his colleagues on the Monetary Policy Committee "did not have much of a choice" as they battled to prevent the UK being dragged into a worldwide economic slump by slashing interest rates. And he said his legacy to the current MPC was to "sort out" the problems he had caused…

(Thus making the present situation even worse and the over-extended consumer debt driving people to bankruptcy!)

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