Monday, December 17, 2007

Trouble In Store

It seems that there is something of a spat going on between the government (ie Gordon Brown and his sidekick Alistair Darling) and Mervyn King (Governor of The Bank of England).

King is reportedly becoming fed up with Brown's dithering and inaction over the credit crisis, and the inaction by the government over Northern Rock.

In fact King has become so fed up, that he has allowed his displeasure to be leaked to the media. See The Times.

Seemingly Brown is so demoralised at his waning popularity that, like a rabbit caught in the headlights, he has become frozen with fear and unable to take/make any decisions.

King, meanwhile, faces a grilling tomorrow by the Treasury Select Committee over his handling of the crisis and his about face last week when he joined other central banks in offering credit facilities to the beleaguered banks.

This of course bodes ill for the country, a frozen Prime Minister at loggerheads with the Governor of The Bank of England spells economic disaster.

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