Could there be more?
Well, yes. With rising yields, a potential double-dip (UK manufacturing has broken from its 5mth streak) and an inability to raise revenue the UK government will find it difficult to balance its books.
The only answer is to print more money. However, quantitative easing could cause more problems than it solves, especially if confidence is lost with the pound.
“I am becoming convinced that Great Britain is the next country that is going to be pummelled by investors,” said Kornelius Purps, Unicredit ‘s fixed income director and a leading analyst in Germany.
Mr Purps said the UK had been cushioned at first by low debt levels but the pace of deterioration has been so extreme that the country can no longer count on market tolerance.
Source: Telegraph
