Wednesday, 15th August 2018
It’s all over! Or is it?
The Daily Mail’s Alex Brummer was in no doubt. He said this:
‘The Bank of England has signaled the financial crisis is finally over with the decision to lift interest rates to the highest level in a decade….’
You can imagine the sheer relief that swept through the Gibson household once Brummer had issued his resounding all-clear….
At last! Thank goodness! The ‘emergency’ that began a decade ago and took interest rates to the lowest level in the Bank of England’s 300+ year history is finally over….
The Bank has raised the base rate of interest all the way from 0.5% to the dizzying heights of 0.75%….
Things can finally get back to ‘normal’….
Or can they?
What about the financial crisis that lies just around the next corner?
- Pockets of risk….
It was last September when the Bank of England’s Financial Policy Committee (FPC) described the burgeoning consumer credit market as a ‘pocket of risk’….
The consumer debt pile in Britain at that time amounted to £200 billion….
The FPC issued some stark warnings that, if the economy took a turn for the worse, rising defaults on that consumer borrowing could result in High Street banks losing up to £30 billion….… Click here to read more