$2 billion withdrawn, 30% stock crash by British mortgage lender |
| Published: September 15, 2007, 11:00 am |
| Tags: uk, bush economy, real estate bubble |
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The real estate bubble is bursting and it's not pretty. Just as the GOP has some explaining to do concerning their blatant disregard for basic economic fundamentals, the British Labour government and Gordon Brown ought to explain why they thought "easy money" was such a good idea now that everything is falling apart so quickly and violently. Considering how connected banking has become in recent years it has been obvious that problems in one country, especially a country as large as the US, could trigger problems in other countries.Branches of Northern Rock were besieged by savers yesterday as fears grew in the City that the Bank of England rescue package for Britain's fifth-biggest mortgage lender could herald a slide in house prices and further financial collapses.Amid news that property prices were already falling sharply before the Bank's first use of its lender-of-last-resort facility in more than 30 years, the Newcastle-based Northern Rock was forced to keep branches open late [ Full article ] |
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