Until recently, I thought the term 'sub-prime' refered to the chiller wrapped steak I used to buy in UK supermarkets. Recent events in the US have changed all that.
So it is with interest that I return to the UK at a time when the fall-out appears to be spreading quite quickly across the Atlantic. The headlines in the online British media make a number of telling observations. Sterlings 3c decline against the US dollar overnight being just one. House prices are now falling in real terms and growth figures for 2008 are being slashed.
In New Zealand, we have been pretty much sheltered from the worst of the US's sub-prime mortgage market collapse. For how long however can that situation remain? My visit to the UK may indicate a foretaste of what is to come.
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