From the Wall Street Journal: In a sign that the U.S. economic malaise is spreading to Britain, the pound is fast becoming one of the world’s least-loved currencies. Investors have taken such a dislike to the pound in recent weeks that it’s starting to live up to its nickname among currency traders: the European dollar.

Meanwhile, US Fed chief Ben Bernanke says he’s ready to cut interest rates dramatically to stop a recession in the US (and further prop up housing prices that are already way too high). Let the good times keep rolling. We can breathe easily now.

But Spanish real estate is looking grim these days. In a Financial Times article, a Spanish bank manager says: “I’ve been a bank manager for 28 years and I have never lived through a situation as dramatic as this,” says the branch manager of a regional savings bank, who asked not to be named. “House prices in this town have fallen by 20 per cent, there is no demand, and no mortgage finance. Savings banks have cut off funding. Before the credit crunch, I used to do 12 mortgages a month. Since August, my branch has approved only one new loan.”

 

Sphere: Related Content