UK - Market still in throes of credit contractions

For some investors, the fall and subsequent rescue of Bear Stearns marked a nadir in the market's fortunes. However, developments since - in the form of further problems caused by the credit crunch, modest economic growth and complex inflationary pressures - all suggest a further low in markets before we see any meaningful positive shift in sentiment and share prices. It is clear the credit contraction will take years to unwind. Just because the market has decided to shift its focus, underlying problems do not disappear: mortgage resets, for one, could precipitate another round of bad deb...