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When you consider the 'halfwit' Mervyn King, Governor of the Bank of England did nothing for 6 weeks when he was notified Northern Rock was insolvent; then it isnt surprising they would try to block nationalization.

Biggest mistake by Labour but the price they paid to be finally elected in 1997 was giving the Bank of England its 'independence'. 'Independence' being a euphemism for a handful of companies and movers and shakers controlling the bank with no recourse by the electorate or their elected politicians except for the few nominees Brown or whoever is PM is allowed to nominate.

Brown, Blair and the whole new Labour crowd guaranteed the powers that be they would act and be 'corporate Labourites to go along with the 'corporate Tories'.

Unfortunately in England; its not just the ultra rich who control the BofE but the ultrarich and the 'inbred toffs' who figuratively and for all I know literally, Mervyn King comes from.

Which makes it potentially much worse in England when compared to just having to threaten the 'ultrarich' in the US before the Fed becomes aggressive. It is very possible in England, the recession(depression) will be far worse than in the US; not because the systemic problems are greater but because the capacity for pain is far greater for the 'ultrarich and inbred' toffs in England.

by An American in London on Wed Jan 16th, 2008 at 09:28:15 AM EST
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I was just thinking that the inflationary pressures and the slide of the pound against the dollar and euro would require raising interest rates, but that would just make the credit crunch worse. So the UK will be hit hard, very hard.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Wed Jan 16th, 2008 at 09:31:20 AM EST
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