Thursday, May 17, 2012

Is the Bank of England out of Touch ?

Can the Bank of England wave a magic wand and solve our Financial Crisis ?

Apparently Not.

Last year on the 27 July 2011 I attended LSE presentation by Professor David Miles "Monetary Policy and Banking Fragility"

During the presentation we were given many facts and figures in relation various banks balance sheets and what was surpising was the potential for soverign debt to become toxic.

The presentation I believe was held on the day of European Bank stress Tests. The All OK was given to almost all Banks apart from a couple of scapegoat Banks. We now know soon after Ireland had to go cap in Hand and Greece, Portugal followed.

I possed the question to Professor Miles that we now have the situation of "Zombie Banks." As you can hear, my question was given a fairly short response and that while there were a couple of Banks in Euroland needing some extra capital, the UK was fine and Banking system would recover. We are now almost a year on since Professor Mile's presentation and far from the picture becoming rosy and the World recovering again, it would seem the World is now plunging into the Abyss. The Banking system yet again is at the Epi-Centre

You be the Judge

Toby Chambers
Social Entrepreneur

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