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Archive for April, 2011

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The lack of understanding of the British authorities about the nature and extent of the looming global crisis was shown by his depiction of the Northern Rock of a wrong business model. At this stage, the authorities apparently believed that the major UK banks were managed well. The assets included in the gross loan portfolio was overvalued, and foreclosures are mounting for the borrowers who clearly should have lived in a modest rental property in opposition to become homeowners.