November 7, 2007
Governor warns of bad things ahead
The Governor of the Bank of England is warning of the impending doom that may head towards our shores. Meaning that there are still many problems in the US mortgage market that have not yet surfaced and if or when they do, then this could spell trouble for many of the UK big name banks.
The problem lies with the UK banking industry as nobody really knows to what extent they are involved in the US mortgage market, its not that they will go bust or anything, the problem will be that they are likely to tighten up the lending practices which could mean less house buyers and therefore as a result house prices will suffer.
However this is not likely to occur until the second half of next year, so there is still time for the banks to get their houses in order!
Source [Independent]
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