The Bank of England is warning that we’re back in two-two-two thousand and eight:
The eurozone crisis has left UK banks unable to raise the funding they need to make loans to businesses, evoking the spectre of the crunch that followed the collapse of Lehman Brothers. And on one critical measure — the cost of insuring banks against going bust — lenders are already facing tougher conditions than at the height of the crunch, the Bank said.
For the benefit of those who don’t speak Central Bank, “on the brink of a credit crunch” means “we expect there to be a serious financial crisis within months”. In the spring of 2008, the bankers I knew were all talking endlessly about the tightening of credit and the senseless calling of major credit lines. And we all know how that turned out in the fall.