Source:
The ObserverBritain's house price growth will be halved next year as the global financial crisis exacerbates the impact of rising mortgage rates, according to Nationwide, the biggest mortgage lender.
After the dramatic bail-out of high street bank Northern Rock underlined the impact of the American 'sub-prime' mortgage crisis on Britain's financial sector, Fionnuala Earley, Nationwide's group economist, said she expected house price inflation to slow to around 3 per cent next year.
Thousands of anxious customers queued outside Northern Rock branches for a second day yesterday, ignoring calls for calm from the Chancellor, Alistair Darling, and the bank's management, and sparking fears of a full-blown 'run' on the bank.
Speaking to Channel 4 News last night, Darling said he had been assured by the Financial Services Authority that Northern Rock was capable of meeting its financial obligations to its customers.
Read more:
http://observer.guardian.co.uk/uk_news/story/0,,2170336,00.html
Bank of Canada sees credit woes lingering
OTTAWA, Sept 12 (Reuters) - The global repricing of credit risk may take longer than in past episodes because of the lack of transparency and complexity of new instruments, Bank of Canada Governor David Dodge said on Wednesday.
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-09-12T114528Z_01_BAC000141_RTRIDST_0_BANK-OF-CANADA-SEES-CREDIT-WOES-LINGERING.XMLLooks like this will be a long drawn out affair until the errors are corrected.