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DoctorJ

Moneyweek - The Real Credit Crunch Has Only Just Begun

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Northern Rock is hardly a distant memory - but with the immediate crisis past, most investors are no doubt hoping that we’ll get back to business as usual pretty sharply.

The trouble is - as we note in this week’s MoneyWeek cover story - Northern Rock’s woes were just symptoms of a deeper problem in the markets. The days of easy money are gone.

The bank which has caused Mervyn King and Gordon Brown so much heartache was one of the first to hurt when the credit crunch took hold, because it was among those most reliant on debt to fuel its profits growth - but it‘s by no means the only one.

Profit growth across many sectors in recent years - from retailers to house builders to financial services - has been built on a house-price fuelled borrowing boom. A large chunk of the economy has been reliant on that borrowing binge continuing. But now it’s coming to an end.

Northern Wreck was the first casualty - but it won’t be the last…

Northern Wreck - Love that :lol: wonder if this will go to court? <_< *

* :lol:

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Northern Wreck - Love that :lol: wonder if this will go to court? <_< *

* :lol:

Hew Edwards called them "Northern Wreck" on the Ten O' Clock news. Love your avitar btw.

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no URL?

I don't have subscription - just the e-mail that shows the highlights. The full article is from Moneyweek

Can anyone post it for me?

Interesting that they think this is only the start of the nightmare, just when I was beginning to think it was contained ;)

Edited by DoctorJ

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