FEARS GROW FOR BRITISH ECONOMY AS PANIC OVER RUN ON BANK SPREADS (Guardian UK)

US Treasury Secretary Hank Paulson flies in to London tomorrow to discuss the worsening global credit crisis with Chancellor Alistair Darling, as fears intensify that the lending squeeze could be the last straw for Britain's buy-now-pay-later economy.

Thousands of anxious customers queued outside branches of Northern Rock to withdraw their savings this weekend, ignoring calls for calm from Darling, after he helped broker an unprecedented emergency loan from the Bank of England to rescue the bank.

City economists warned that a decade-long borrowing binge had left the UK economy dangerously exposed to the fallout from the credit crunch. 'I think the UK is extremely vulnerable to this,' said Danny Gabay, director of consultants Fathom. 'The UK has a double vulnerability. We are vulnerable because of our hugely over extended consumer sector, and because of our large financial services sector.

'This is a financial market event; but the longer it goes on, the greater the risk that it becomes a real economy event - and I think we are at a tipping point.'

more
http://observer.guardian.co.uk/business/story/0,,2169906,00.html ((

This crisis of confidence is how the Depression started.

How come DU has been so far out front on this stuff for so long, and the rest of the world is just discovering it? We've been posting about is coming for at least a year now.

.

It's an eye opener

n/t

I know it's coming...just don't let it be so soon...

be preferable...

They cannot contain this news much longer here..

.."They had little idea what was coming...and it was coming fast"
"The English won't be so prim and proper when it hits"

Starts Sept 17

Also starting October 4..."America's Middle Class gets a 2X4 Stuck up its Ass"

Enjoy the Show. Visit out Concession Stand for Popcorn (6 Dollars) and a Cool Refreshing drink (3.50)

This is going to be a mess if it hits the US.

many of them, if not the majority of them are financed with ARMs. The problem is not just here in the USA, it is all over the world!

Welcome to the global economy!

:scared:

:dem:

95% of all mortgages in the UK are ARM's. The British Central Bank has had to increaqse the prime lending rate 6 times in the last year. It's only a metter of time. BTW, I think McMansions are in the US, not the UK. I think they actually have real mansions there.

nice thing to build on the spots where those old castles once stood. :sarcasm:

Sadly, this is true. Will they build some on Tara next is the question? I rather doubt it as the bubble hath popped there too.

They have built many huge homes in Ireland in recent years and many of these newly built gigantic homes are now vacant as they were financed with ARMs. These houses are there still yes, but no one is living in them as the banks now own them.

Pretty sad IMO and they aren't cheap either (going for over 300,000 Euros at least).

Grim alright, grim everywhere, not just in the USA. :(

:kick:

AKA "duplexes" in the States, are financed via those ARMs. Hardly the same thing.

:)

Aye, that's where ours is ;)

expect a bloodbath...

the prices are HYPER-inflated and outright ridiculous. Look for the bubble to burst, just like in the USA.

Best decision he ever made. Unfortunately, he was unable to sell
the "semi-detached" house, and is renting it out. On the positive
side, he is making buckets of money in Australia.

So they have both places rented out, but they are starting to get a little nervous with the run on banks there. I hope they don't lose their shirts! We exited the US market just in time, otherwise our house would have worth alot less than it was when we sold it.

interesting to entertain the notion of a potential in this economic crisis? One that runs counter, in a Populist way, to the implications?

Just at the Colonies created their own currency, if The People decided, well, that long-term entrepreneurial venture by big money, Elite families, and huge, controlling, Global, mega-banks, has failed! Time to toss it and endure the potential chaos in a new light. The People could, in tandem, vocalize a new fiat for the economy and its currency. In fact, this kind of chaos and breakdown is either about depression/Depression, or the simple realization that not only is money simply an abstract, intermediary contract between people, goods, and services, to allow it to be manipulated as if it were real and close to concrete is the root of all "evil" when it comes to its acceptance and overemphasis as if it is a false idol of worship.

So, the opportunity arises. It has a slim chance of becoming a reality, but then, voluntary changes like this with slim chances have had success. When something heavy starts to sink and you have your rope tied to it, either you cut the rope, or you will surely sink with. This is not at all that far-fetched if people could grassroot the idea and see that we don't have to go down withe anchor that Capitalism and Plutocracy have thrown for us, expecting us to follow it into the abyss they have fomented.

And there is the key! You either believe in the money and the system as unquestionably real, or understand that they are arbitrary ways for doing business and translating one thing, temporarily, into another. It is simple, but maybe that is why they say that the LOVE of money, (not money itself) is the root of all "evil", (read: usury, booms, busts, breadlines, etc.)

If you love the stuff, then you too have missed the point and have a false idol in your midst. No, I am neither religious nor atheistic. The metaphors are merely common and appropriate.

You are then, probably, one in a million and we need more that that, don't we?

Birds of a feather. Kindred spirits. Yet, why are our compatriots falling into the Matrix of control without barely a moan or a whisper when their voices should be shouting loud enough to drown out the inane cacophony of the corporate media blitz that helps to keep almost everyone silent and complacent when the call to action is so very loud?

We have a crisis in our midst, and most Americans still play a game that only gives tokens for survival and exchanges propaganda for real, impending, vital concerns.

that comes with it has taken over. Captitalism is good...Printing money when it's needed is good...

"money is the root of all evil." An old expression...but a good one. What IF this could be a turning point?

Thanks for your post!

I know it's a bubble, I know it has to burst eventually but as someone likely to be under it when it does, I'm glad it's not right now.