There is now a palpable fear that global investors may start to shun British debt as the budget deficit rockets to £118bn - 8 per cent of GDP - or charge a much higher price to cover default risk.
The cost of insuring against the bankruptcy of the British state has broken out - upwards - over the last month. Yes, credit default swaps (CDS) are dodgy instruments, but they are the best stress barometer that we have. http://blogs.telegraph.co.uk/ambrose_evans-pritchard/blog/2008/11/24/is_britain_going_bankrupt
RIOTS IN ICELAND: CITIZENS REVOLT AGAINST FINANCIAL CRISIS, CORRUPT MINISTERS...
VIDEO...
UK TOP INCOME TAX RATES COULD HIT 61%...
It pains me deeply to announce that, despite the massive government rescue, yesterday's collapse of Citigroup could ultimately lead to a shutdown of the global banking system.
For many years, I hoped this would never happen, and I thought we might be able to avoid it.
