Cathy Busby has never met Mick Mayor. The 47-year-old hospital administrator from Colorado had no idea that when she fell behind with the mortgage payments on her three-bedroom home in the Denver suburbs, it would stop Barclays extending the overdraft limit on Mayor's business four months later.But this is the true story of the global credit crunch. What seemed initially to be a problem in the US housing market is now forcing up the cost of borrowing here in Britain, having swept from Denver to Darlington.
How bad debt went global
The Telegraph has this very interesting story which chronicles how the sub prime problem which started in small section of US mortgage market spread to worldwide market. Banks in UK and Germany have taken serious beating because of this problem. The article is fascinating behind the scene look at the problem.