How Long Until People Raise The Alarm About Britain?

The Automatic Earth | Jan. 16, 2012, 8:48 AM


There is a relative silence in the international financial press when it comes to Britain.
The economic situation of continental Europe gets almost all the attention.
Every now and then someone in France or Germany states that Britain, too, should be downgraded, like when S&P cut the ratings of 9 European countries, but such statements attract hardly any interest at all. This might not be overly wise, though.
At the end of last year, Tyler Durden at ZeroHedge published a graph from Haver Analytics/Morgan Stanley that should probably have sounded alarm bells quite a bit louder than it did.

Still, this graph would seem to indicate that the only core issue in the UK is its outsize financial sector with its outsize debt. From time to time, however, news articles pop up that seem to indicate there's more going on than trouble in the City of London.