This morning, while drinking my cappuccino, caught a glimpse of a story in the Daily Mail – which claims that Eddie George, until not long ago governor of the Bank of England – admitted yesterday to a House of Commons Select Committee that the Bank had played a key role in fuelling the credit/housing
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Hold on to your assets, says Bob Ivry of Bloomberg (12 March 2007). The deepest housing decline in 16 years is about to get worse. As many as 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage In August 2006, when most financial commentators, banks and lenders were asleep at the wheel, I posted a piece on the Guardian’s Comment is Free site predicting that the fall in house sales in Florida and California were canaries in the deep vast coal mine of US credit – and that the impact of The nation state is dead, we are told. Boundaries no longer matter. Globalisation is triumphant, and we should all rejoice in a borderless world. Money, trade and information can flow, uninterrupted, from Japan’s capital markets via the ‘carry trade’ to South Africa’s capital markets, where quick and big bucks can be made on the Bought the FT this morning; fear is lurking in the credit markets. There is now talk of pension funds buying into risky credit markets at just the point hedge funds have slyly slithered out of them; of companies – like California’s Fremont General Corp – dangerously exposed to the sub-prime lending market; and, because Wolfgang Munchau writes intelligently today for Eurointelligencewarning of three real reasons to panic. One: a US recession is now imminent, and is going to be painful for the global economy; ‘soft landing’ talk is self-serving and reckless; second the threat of a ‘severe financial crisis in the global credit markets’; and third, the failure |
In the September 2003 edition of openDemocracy I wrote: 
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