For the last 10 years the UK population has enjoyed a lifestyle that it couldn't afford and did not merit. At first it could cope. 2001 tech bubble burst was a warning shot but the 2005 tremour was a dire warning. It was ignored. House price inflation was allowed to roar away until the Sept 2007 epiphany.
Look at any stock market chart.
05 should have been the peak followed by a small recession. It was postponed for 2 years and the result is a major recession. This did of course coincide with a certain General Election victory of a third term never seen by a particular adminstration...
During these good years the public finances should have been in good order with record receipts. Unfortunately they were places 3% in debt which is a position you would associate with a serious recession situation...
The country is seriously screwed and the markets, internationally, are telling you that. Ignore the domestic politicians and newspapers who survive on domestic consumption led advertising.
Its screwed. The country is bankrupt. Bankrupt.
You think I'm a nut job.
Unfortunately, I'm not.
WWW