Recently there's been much speculation about the financial security of Great Britain.
One trigger for the alarm is the rapidly declining value of sterling; however, financial journalist Nils Pratley says there's no real cause for panic just yet.
Britain Filing Bankruptcy? It's a Premature, if Not Absurd, Idea.
Pratley points out that sterling was widely overvalued and is now in the midst of a correction that will take years. He says that the talk of Britain filing bankruptcy is dramatically premature, if not absurd.
British Banks
Others agree with Pratley and say that the growth of British banks was out of proportion for the economy, and has made them more vulnerable.
Other Euro Countries are Worse Off
David Wighton of the Times says that actually, many European countries such as Germany and Spain are in similar or worse shape than the UK.
So, What's the Cure?
Some economists say that the answer to the financial crisis is to nationalize more banks in Britain to restore confidence in the economy and allow the government to open up lending.
As in the U.S., many deem the banks in the UK as "too big to fail" and call for full nationalization and a coordinated attempt to rebuild British capitalism.
Tags: Britain Filing Bankruptcy, economy, filing bankruptcy
This entry was posted on Thursday, January 29th, 2009 at 12:06 pm and is filed under Economic News: How Are We Doing?. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
I owe money for an overpayment on SSI will this be taken care of when I go through bankruptcy>