Mervyn King, the Governor of the Bank of England, is being lined up to be the fall guy for the Northern Rock fiasco [See HERE]. Paricularly now because of a huge policy U-turn today, when the Bank annnounced an injection £10 billion into the banking system to free up the credit crunch.

If it had done this earlier, the Northern Rock debacle might not have happened. But, is it Mervyn King’s fault. Not entirely, though he is complicit. 

I could outline here why I think Gordon Brown is to blame – but I’ve discovered just how good John Redwood online diary is in providing sensible, and compelling arguments to identify those really at fault, see here his analysis of the loss of the Bank of England’s independence.

For a sensible take on the issues in world finance and how they play into the UK economy, take a read. It’s top stuff.