By and large, central bankers never really tell people the truth.
So when one of them slips and lets forth with the cleat of reality it’s worth taking note of.
With that in mind here’s what Mervyn King, Governor of the Bank of England, last week about the future of his fellow Englishman.
From the Independent by Sean Farrell entitled: King says living standards may never recover from the crisis.
“The Governor of the Bank of England warned yesterday that living standards may never recover from the financial crisis and that households were only just starting to feel the full impact of bankers’ mistakes.
Mervyn King told MPs that ordinary people were not to blame for the pain ahead and that he was surprised there had not been more public fury.
“It is not like an ordinary recession where you lose output and get it back quickly,” the Governor said when asked if the country would ever recover from a squeeze on living standards on a scale not seen since the 1920s.
“You may not get it back for many years, if ever, and that is a big long-run loss of living standards for all people in this country.”
Mr King said that unlike previous recessions, the economy had not needed a shake-up to get industries out of state control or weaken union power and that the people bearing the most pain are blameless.
“They can’t look at this and say, ‘Okay, something was wrong that has to be put right’ and they don’t get bonuses on the scale of people in the financial services sector,” he told the House of Commons Treasury Committee.
“The cost of this crisis is only now being felt. I’m surprised that the degree of anger hasn’t been greater.”
It makes me wonder what the Bernank would really say if you could get him to spill the beans.
Related Article:
NEWSFLASH: The Meltdown Didn’t Have to Happen
Bill Black: Fire Holder, Geithner and Bernanke
The No Spin Zone: Bill Black Calls BS
Epic Fail: Brooksley Born Demolishes Alan Greenspan
Matt Taibbi: Goldman is “Re-creating the conditions for another crash”
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