No, Not Karl Marx; That Other Mark, Mark Carney – “Just as any revolution eats its children, unchecked market fundamentalism can devour the social capital essential for the long-term dynamism of capitalism itself.”

“Just as any revolution eats its children, unchecked market fundamentalism can devour the social capital essential for the long-term dynamism of capitalism itself,” Bank of England governor Mark Carney said. “A sense of self must be accompanied by a sense of the systemic.”

Carney said public trust had been damaged by the behaviour of banks both before and after the financial crisis. He cited allegations that the Libor interest rate benchmarks and prices on the foreign exchange market were tampered with.

“Unbridled faith in financial markets prior to the crisis and the recent demonstrations of corruption … has eroded social capital,” he warned. “An unstable dynamic of declining trust in the financial system and growing exclusivity of capitalism threatens.”

– from ‘Bank of England’s Carney says bankers should be less selfish’, David Milliken, Reuters, 27 May 2014

Related things can be said for the threats to a society of perversely low borrowing rates resulting in astronomically overvalued homes. A housing bubble devours its life-blood.
Carney was instrumental in ensuring years of mispriced money in Canada. He repeatedly threatened to tighten policy, but never walked the walk, and his words were ignored and seen as vacuous. And he never adequately leaned on those in government with direct influence on mortgage terms.
– vreaa

14 responses to “No, Not Karl Marx; That Other Mark, Mark Carney – “Just as any revolution eats its children, unchecked market fundamentalism can devour the social capital essential for the long-term dynamism of capitalism itself.”

  1. “And he never adequately leaned on those in government with direct influence on mortgage terms.” – Vreaa

    PoorBugger… that would probably explain why he’s still just a renter, Ed. Or, as another downtrodden British public housing occupant [and PM] David Cameron once famously remarked, “We’re all in this together.”…

    [UK Telegraph] – Bank of England Governor settles on £3m London home: The new Governor of the Bank of England has finally found a multi-million pound home in London to spend his £5,000 a week taxpayer-funded housing allowance on

    …” Mark Carney and his wife, who has previously raised concerns about finding a home in London, have settled on a six bedroom £3 million home for them and their four daughters – complete with five bathrooms and his and hers sinks.

    Revelations about his new taxpayer funded home come at a time when Britons are struggling to get on the property ladder in the wake of the recession.”…

    http://www.telegraph.co.uk/finance/mark-carney/10163681/Bank-of-England-Governor-settles-on-3m-London-home.html

  2. Reminds me of the Jaguar adverts on TV…. “Oh, it’s good to be bad…..”

    😉

  3. $20,000 a month allowance is impressive, until you look at the price or rent of luxury residences in London.

  4. Real Estate Tsunami

    A quid for pro, maybe?

  5. Perhaps Mr. Carney could also comment on the role of abundant and abnormally cheap money from central bankers and its role in creating asset bubbles and causing distortions in the real economy and financial markets. That’s commentary I’d love to hear since he’s been doing since 2008.

  6. life goes on … pffft! … http://tinyurl.com/llrdgqm

  7. “And he never adequately leaned on those in government with direct influence on mortgage terms.”

    That claim has about zero validity. What is it based upon? Maybe you were a fly on the wall and know something the rest of us don’t. Last I heard there were quite a number of progressive tightening steps undertaken by Mr Flaherty. Are we to assume that Carney did or did not have input into those decisions? Was it even his job to apply pressure to fiscal decision making? Maybe we need to look more closely at what his job actually was as head of the Bank of Canada since you imply it is to pressure the government to do the banks bidding. Sorry but that comment irritates me because it shows a lack of understanding and what divisions exist between monetary policy and lawmaking. The blamer’s should appreciate though as usual. Somebody else is always at fault. It is never us…… is it?

  8. Still waiting for the shots of super-villain Carney zooming through the streets of London in a Jaguar F-type….twirling an imaginary moustache!

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