Once U.K. loses triple-A rating, chaos will follow
By Matthew Lynn
Sept. 12, 2012
LONDON (MarketWatch) — The unfolding catastrophe in the euro zone has not been great for the British economy. It has hit exports to its largest and closest market. It had dented business confidence, slowed investment into the whole of Europe, and undermined faith in banks that already weren’t looking too healthy.
But in one important respect it has been a blessing. It has distracted attention from the dire state of the U.K.’s own economy. When one house is burning down, it is easy not to notice that the one next door has dry rot, weeds on the driveway, and a few holes in the roof where the slates used to be.
But Britain’s troubles may not be invisible to the markets much longer.