Friday, December 7, 2007
The chart below looks like the cardiogram of a patient who is suffering a heart attack
Britain is structurally more vulnerable than America to a severe economic slowdown. This is because Britain's growth in the past decade has been driven by three forces — finance, housing and public sector spending — all of which are now going into reverse. To make matters worse, the City is about to be hit by the biggest tax changes in a generation, which are bound to drive at least some high-value financial activities offshore.