The Spectator’s Notes | 28 March 2009

The Governor of the Bank of England’s eyebrows were the proverbial means of preventing unwise schemes in the City. He raised them, and rash financiers withdrew, chastened. Things have now come to such a pass that the Governor has to raise them — publicly — to discourage rash Prime Ministers. Mervyn King’s direct warning on Tuesday against ‘another significant round of fiscal expansion’ is born of a desperation which all involved in the ‘tripartite’ (Bank, Treasury, FSA) system feel about Gordon Brown. They admire his abilities. They mostly agree with his big ideas about how to stave off global financial collapse, but they worry about his judgment, and his belief that, simply by proposing an initiative, he has achieved something. They find it hard to make him pay attention to reality. Looking back over the years leading up to the present crisis, Mr King thinks that his analysis of the problems was correct, but he reproaches himself for not warning about them more loudly.