10/04/2008

The government should start taking economic advice from Robert Peston

The BBC's Robert Peston has been ahead of the government in almost every respect during the credit crunch. He predicted the problems faced by Northern Rock, Bradford and Bingley and Alliance and Leicester, he remarked months before the credit crunch started that their were very grey clouds on the horizon, and he also broke the News of the HBOS takeover by Lloyds TSB before anyone else knew.

Seemingly, it seems, the BBC's Robert Peston knows a great deal more about the problems in the economy than the Chancellor does. So given all this, perhaps the government could do a lot worse than to take his advise on how to put matters on to a more stable footing whilst also making sure that the tax payer does not miss out. It's well worth a read.

16 comments:

Anonymous said...

Robert Peston should resist the temptation to break stories to inflate his own ego at "getting there first" - and one wonders at the morals of his sources (presumably at the investment banks advising on deals or helping companies in distress and in (confidential) searches for "white knight" investors) leaking him tit-bits in breach of the Listing Rules, Code of Market Conduct, etc etc. It's a truism that the BBC's coverage of Northern Rock hardly helped to shorten the queues at branches...

Richard Young said...

Agree with anonymous. Just this morning I have set up http://robertpestonmustdie.blogspot.com/ to vent my fury at the man, his doom-mongering and his rampant ego. I urge your readers to send me their Peston pet hates for the site.

Anonymous said...

Commenting that Robert Peston has been ahead of the government with respect to the credit crunch is hardly a glowing reference. Does this mean he is only a few days late to the party?

If he, other journalists, and with a great deal of luck the government, had listeend to much of the research flowing out of the city and many economists since the start of the year I doubt we would be in the same position.

Anonymous said...

Robert Peston, informs the country of the real issues, his reports make it easy to understand whats going on. And he is not scared to withhold the infomation that matters... i.e. from his blog you can find out when the auction dates are for Fannie and Freddie debt's, which is big news depending on which former great bank especially UK bank's has interests in...

I would like to hear him bringing to the news why even though the price of oil has fallen more than 35% in the last few months, we are still paying a premium.. Surely if the price was reduced at the pumps, inflation would start to come down and thus making it easier for interest rates to be cut?? Helping every family in these hard times... Which will give the general public a sign of good news...

If the price we pay reflects the price % reduction we would be paying approx £0.95 per liter for diesel... BIG difference..

Anonymous said...

Certainly not too difficult to be ahead of the government on this crisis.

Peston also said on TV the other day Bradford and Bingley is likely to be the last UK bank to go - Not looking like a very good prediction now.

I think he is as clueless as everyone else as to where this all ends. Rather than making predictions it might be better if he reported the crisis as it is happening.

Anonymous said...

Ahead of the government, or instead creating some of its problems?

Anonymous said...

robert Peston, along with the Press in general seem more interested in getting the sensasional headline than reporting facts in a balanced and responsible fashion. The press have been trying to talk us into a recession since the biggining of the year. Were they predicting events or simply the creators of a self fulfilling prophecy?

Anonymous said...

This government is extremely adept at creating its own problems. Being ahead of the government on almost any issue merely implies that one has reached the elevated stratus of one of the more advanced forms of amoeba.

Petrol and diesel prices haven't subsided dramatically as they are bought 3 or 4 months forwards, ie the petrol and diesel being delivered today on the forecourt was purchased at early July's sky high prices.

Anonymous said...

Its people like Robert Peston who have caused the problems in this country not so much fat cats. Every day there is yet another over the top headline with his doom mongering. Get over yourself Robert the media does more harm than good.

Bemused economist said...

What I've never heard Peston talk about is the whole reason this crisis is happening, namely the poor competitivity of the US economy.

The US can't match its competitors but has refused to devalue the dollar to compensate. So assets held in dollars become priced higher than they are really worth. As reality intrudes, there is a crisis. Prices fall nearer to their real value, wiping out institutions built upon those assets (such as Lehman Brothers).

It's not just about bankers.

The US is trying to rule the roost on the basis of an economy that doesn't cut the mustard. This, by the way, is why they are being so belligerent - trying to use their military to win advantages they can't win on the economic field. But it would take World War Three to solve its current problems...

Jimmy Norm said...

I think Robert Peston does a great job reporting whats goin on in a very complicated market to understand...being only 21 i didnt really take much notice of the world stock markets until this "drama" unfolded a few months back.. robert gives you the information that you need to no and the facts. i do believe however that the media are playing this "credit crisis" up far to much and are pushing the stock markets down as a result as confidance is no where to be seen at the minute.

Anonymous said...

Your doing a grand job Robert so keep it up

nick
bank of england (retired)

Anonymous said...

Robert Peston attidude seems to me,to be a prime example of what's wrong with much of our media.Namely irresponsible reporting.Too many journalists are rather more concerned about grabbing the headlines with sensationalist,scaremongering reports, then they are about the consequences these reports may have on the country as a whole.
His "outing" of Northern Rock is just one example which has cost this country dear.The first "run" on a bank for over a hundred years was fanned.fueled and stoked by the BBC.So much for thinking the BBC were above this type of thing.

Anonymous said...

Liked Robert Peston from day one, reminded me of Rimmer in Red Dwarf, so perhaps his brilliant foresight is a result of time travel. No one else has made the financial facts so clear to us, bad as they are.

Anonymous said...

I love the way Brown fans try to blame Peston for the crisis!!! its really pathetic but very amusing.

Professional Economist. said...

By reading the comments below it is, at least, encouraging to know that journalists of Mr Preston's ilk are not brain washing everyone.

There a some things Mr Preston could do with reporting:

a) An education in Economics.
b) An education in Journalism.

Gratefully agreeing with many of you.

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