Anatole Kaletsky states in The Times today that there is a risk that house prices may fall by between 20%-30%.
The ongoing turmoil in the international credit markets is now affecting the lives of ordinary people in Britain, not just the small number who work for City institutions.
The Fed, in the US, has shown leadership and courage in trying to deal with this mess.
Today the Bank of England decides about how much it will cut interest rates, as Keynes said under these current circumstances:
"That's rather like pushing a piece of string"
The Bank of England and government need to wake up to the fact that tinkering with interest rates alone will not be enough to address this crisis. There needs to be an effective and co-ordinated policy set out and enacted by the Bank of England/government now.
The trouble is these two organisations have yet to grasp the reality of the crisis, and are still comforting themselves with past economic glories.
The past is another country, we have long since left that country!