Housing Blogs

Today, the UK financial system is in a crisis. Northern Rock – a small regional bank has already collapsed, the interbank market is frozen and the spectre of higher loan defaults threatens the entire system. Far too many banks are under-capitalised and excessively dependent on wholesale funding. After a decade of reckless lending, the banks are looking for an exit strategy, and the taxpayer has deep pockets.Unfortunately, the banks might have some justification for looking towards the government for a bailout. Successive governments created the enabling environment that allowed the banking sector to go mad with credit. Competition was encouraged; supervision was relaxed and banks always knew that if things became sticky, the Bank of England would come to the rescue as the lender of last resort….
Original Source: ukhousebubble.blogspot.com