Financial pain may stop us living beyond our means
The Bank of England's announcement that it plans to help other banks by swapping secure government bonds for risky mortgage debt holds little surprise, considering the financial machinations dominating the news. This move is eerily reminiscent of what happened to Northern Rock, which was forced to ask for loans to continue its business. Its misfortune seems not one of reckless investment, but of bad timing. If it had been last month that it had run into trouble, it would have been able to barter its way out of the mess. With new figures showing the cost of house rentals climbing - up 15...
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