Market Oracle: Northern Rock Bank Nationalised- Which Bank will be Next?

Which other banks will follow Northern Rock? There will be further failures as the credit crisis is deepening. The US monoline insurers face failure thus magnify the original estimates of bank losses potentially ten fold ! The prospects for the UK mortgage sector looks dire, with the UK housing market having barely begun to feel the impact from the credit crisis (see graph in article). Mortgage banks such as Bradford and Bingley, Alliance and Leicester and even the mighty HBOS will feel the pain from a forecast of a 15% drop over 2 years. The Government has increased the national debt by £50 billion, the impact of which has been felt in the foreign exchange markets with the pound plunging on fears that that further bailouts will lead to a surge in bond issues resulting in higher IR!