Mervyn King Joins Ben Bernanke

Ben Bernanke is not the only Fed Chairmen testifying before government officials. Bank of England Governor, Mervyn King was busy addressing magistrates on the Treasury select committee. Interesting article with a few interesting pieces of data. I still contend that at this point, how much worse things get is tied very closely to how the story unfolds in Europe. 2008, the United States was ground zero. I believe 2009 Europe is ground zero as the continent catches up with how bad things are in the banking system.

One interesting thing from this article is the open declaration that a government program is to pump money into the system is a scheme. I don't know if that is a cultural difference in word usage or the British media is calling it for what it is.

http://www.guardian.co.uk/business/2009/feb/26/mervyn-king-banks-more-money

"How much capital banks will need in the end is impossible to tell because in large part it will reflect developments in the world and our own economy that are impossible to predict with any precision," King said. He said the banks desperately needed the money ahead of an independent assessment of their loans made around the world.

and

King told the group of MPs that the process of quantitative easing should begin in the "next few months", which will involve the Bank buying up assets in order to boost the money supply. But he sought to quash worries of "a great inflationary surge".