Chin up, Mark Carney, things can’t get much worse

Disappoint? The new Governor of the Bank of England is more likely to succeed

For all the focus on this week’s somewhat underwhelming and unsatisfactory spending review, a potentially far more significant economic event occurs on Monday: Mark Carney, a former Goldman Sachs wonder kid, takes up his position as Governor of the Bank of England.

beech: I fear that Carney is like one of those foreign footballers or England managers who are bought by clubs at huge cost or paid a vast salary by the FA and who then turn out to be a bit rubbish, really. No-one thought to ask at the time: if he's so good, then why don't Barcelona, Real, Bayern, Brazil, Germany etc want him? In other words, if Carney's so clever, why isn't he going to Russia, Germany, USA or China? I'm sure a man of his intellect could soon learn another lingo, if necessary. I reckon it's the old football analogy; we've been seduced by the idea that some foreign bloke must know something that we don't, and we're the only ones daft enough to pay him what he demands.

dtmark: I'd go with the DJ analogy. Back in the 1990s, the DJs were viewed as the celebrities. The artists were just those who made the music. The success of the DJ was/is because of the artists, not the other way around.

westerner: Maybe he turned down all the other jobs you mention and was just nuts enough to go to Britain.  At least he will be "Mister Carney" and not" Sir Mark."" 

dickymintcake: Carney is getting out of Canada just in time.Borrowing to GDP is one of the highest in the world,certainly higher than UK. Their problems are just coming to the boil…

bill40: As I commented earlier, Carney is from the squid so predicting what he will do is fairly easy. He will talk tough on banks while preserving their interests. He will take his orders from the BIS, yet another unelected and unaccountable bunch of neo liberal goons. Above all he will preserve the astronomic economic rent extracted by banks. The robbery of the exchequer will continue as tax payments are transferred into interest for the banks, to give just one example. He will not draw attention to the fact that the real economy cannot support these parasites. Austerity for the public is self defeating and tax on labour is too high. All this does is stifle demand as the sectorial balances work their preordained damage. You cannot wish away basic accounting principles. The alternative of cutting back the banks will never hear so much as a whisper.  

simondav: Who does he really serve, us, or the elite bankers ? QE should be done in the right way to benefit the population (not just to repair banks), but the priority will be to get the banks credit machine going again so we have to continue paying rent to them for our money supply. This will be done when enough debt is seen to have been paid off, so the whole wretched boom/bust cycle can start again.

misesdisciple: In five years, Mark Carney will have failed and been exposed for what he is; a keynesian idiot.

keithfromashford: I have a little tip Mr. Carney. The FED set up a housing bubble in the U.S. by using ultra low interest rates to recover from the bust. They had ultra low interest rates from 2001 – 2005, they then raised them rapidly over 2005/6 which led to: 1) Sub-prime collapsing 2) Wall Street investment banks collapsing 3) The global financial system almost collapsing We have had ultra low interest rates since 2008 (longer than the U.S.). Do you think it would be a good idea to start raising interest rates very slowly now, to get the housing market off the crack cocaine of cheap money in a controlled way (unlike the U.S. in 2005/6). I know Central Bankers never learn by experience from the cheap money policies after 2008. They have used the same solution as was used for the bust with disastrous effect. Food for thought, if you don’t want to be known for posterity as a complete idiot like Alan Greenspan and Ben Bernanke.

BrownTrousers: A shame then that it looks likely to be parachuted into tell not to worry, it's zero percent interest rates all the way, baby.

thebluebaron:  0.5% increments every six months would do me!

robertsonjames: Tidy. At least you don't bother screening your financial self-interest in higher rates behind the usual hypocritical moralising about the public interest. If they did raise any time soon they would modestly please those who think cash in the bank is the best way of growing personal wealth and those who have been trying to short the housing market for several years but they would cause default and re-possession for many existing home owners, the implosion of most UK banks' and building societies' balance sheets leading to the need for far greater bailouts than in 2007-8 to prevent financial Armageddon, large-scale negative equity and a collapse in consumer spending plunging us into a much deeper Greek-scale economic contraction than we've yet seen, the closure of many businesses with debts, and, since HMG is the biggest debtor of all, potential state bankruptcy. So, yes, I can see why they'd decide all of that was well worth risking in order to help those Telegraph commenters who reckon they have a cast-iron moral case for the government ensuring they get a good return on their risk-free, taxpayer-guaranteed cash stash.

crafford: Exactly, RobertsonJames - Burger Osborne may be stupid, but he is not SO stupid as to help home-buyers with subsidies, only to raise rates soon after and precipitate the crisis you allude to. No way, and that is why he has parachuted Carney in - to ensure low rates for quite some time to come - till the economy is truly picking up. (King was wanting to start raising rates and was pissed off when he could not persuade Burger not to subsidise the housing market - explains his recent public statements on the matter, doesn't it). And when that happens, just watch the inflation caused when all the QE money (presently squirrelled away in dark corners and under mattresses) comes out to buy.  Wheel-barrows will be required to carry your cash to Tesco's of a Saturday monring shop. Hmmmmmm - what to do????    Politicians will ALWAYS print themselves out of a mess.  Because that is what the voting public wants (they can't see beyond the end of their noses) .

johnmcevoy: The financial mess we are in was 100% designed, implemented and delivered by politicians, who are now overseeing its painful continuation. Not that they are affected personally, you understand.

arabianmoney-net: Spot the new scapegoat!

bill40: If I've said it once I've said it a hundred times. Yes Carney will succeed but for who? Us or the squid?

crafford: Rhetorical question of course, but just to clarify (for the ill-informed):  the squid takes priority - "give me control of a country's money supply and I care not who makes the laws". Let me repeat it, because the utterance is of VAST importance in what is going on in the world today: "give me control of a country's money supply and I care not who makes the laws". ,

sopwiththecamel: Jeremy things are going to get much much worse, and Mark is not the answer, he is part of the problem.

westerner: Since apparently everyone in Britain is an expert in economics how come the place is so completely screwed up?

hubristheviceoftherich: Mark Carney must not be mesmerised by the overwhelming wealth and feudal political power of the elitist cliques in the UK and Europe etc. His Irish mentor, Peter Sutherland, must be told to back off; his master plan out-of-date. Carney will be intellectually feckless pursuing the stupidly named Bilderberg Group's blundering buffoonery. Time for an iron mind to reshape the moral economic diligence of Great Britain. Filthy lucre must be toppled as the demi-god it is. The British people will rally to honesty, fairness and anyone powerful and courageous enough to slay the dragon of corruption and the evil levels of avarice that have poisoned the western world for the past 30 and more years. No harking back to the darker side of Thatcherism (for she knew not what she did) regarding unleashing the ignoble City of London into a slow moving economic armageddon of diabolic proportions. Tax the rich (they can take it having taken enough already), raid the Trust Funds, imprison the tax evaders and correct the mindset of HMRC so that they become loyal to the ethos of good and loyal government not crooks and spivs on the government payroll. Finally, Balls is discredited along with all the other Brown/Blair treasonous incompetents. Raise interst rates soon to allay the the nations's mental health from turning feverishly psychopathic. Serve the people and they will rally. Bring masculinity back to decision making and power, thus ending wussy economics whence the rich get richer and the poor get poorer once and for all.

hubristheviceoftherich: Moderators: Why do you not put a recommend button to certain posts, continually. It shows you in a bad light, it is also an attack on free speech. From such small indefensible acts censorship can and will grow.

Ye_Olde_Sausage_Machine: Ex Goldman Sucks Thanks but no thanks Merv the Swerve was an unmitigated disaster for the UK I doubt Carney will improve things Many pundits think he will devalue Sterling. Not good for people like me who have been sensible, stayed out of debt and attempted to save.

bill40: Is that you Lord Currywurst?


benf: You sir, should be on the new £100 note!

peter63: 'Things can't get much worse', opines Mr Warner in his headline. Looking at the economic facts, it's hard to see what else they can do.