What is the first thing he does?
He says interest rates are too high and the pound is too high too.
Result the pound takes a good tumble and stocks rise over 2%. This ladies and gentlemen is the new Central Banker....not our parents' central bankers who believed in regulating and controlling the more greedy and speculative drives in humans.
These new men (they are all men) want speculation. They want bubbles to be blown up.
They have one eye on the stock market when they make their announcements and if the gamblers there aren't happy, they quickly shift policy.
No doubt he will will be lauded for his immediate effect on increasing risk appetite, but I would say that Central bankers of Mr Carney's ilk are no longer necessary, just replace them with an 8 year who has a free lemonade stand. They don't seem to realise that all this free stuff will cause indigestion later.
The struggling Canadian canary - Back in March, I wrote about the new Fragile Five, which were five highly leveraged developed market economies that were undergoing property booms. The fiv...
1 day ago