Recession will be 'deeper than expected'

Mervyn King governor of the Bank of England expressed his view of the recession today and was forced to admit that his original estimation of the impact was flawed and the recession would be 'deeper than expected'. However, many of us have long suspected that this recession was going to be deeper than the so called 'experts' had been stating. This just goes to enforce the view that politicians and economists alike should admit that they have little control or even understanding of the workings of the economy - although admittedly that type of honesty probably wouldn't help matters... King acknowledged that the GDP could fall by 4% 'at best' which is certainly a more realistic view than previously expressed.
In the background, feelings are running high over proposed bonuses particularly at board level. This, alongside the claims by sacked HBOS risk manager Paul Moore that he was sacked for warning the bank that they were potentialy over-exposed. He is gunning for his former boss Sir James Crosby, who has also been an advisor to Gordon Brown providing advice on options for improving the function of mortgage finance markets. Sir James has resigned from his role in the FSA saying that he was worried about becoming a distraction to the FSA and felt that the right course of action was to step down.

Related posts:
UK reports GDP decline
Economic meltdown
Are we in recession?
CBI predicts 'shallow' recession