What next in the battle to keep the globe afloat?

What is so troublesome in this article published in UK's The Guardian is that there is that possibility of a financial crisis in the likes of 1929 financial crash, or perhaps this is only a shadow, a marginal chaos in financial sector related to housing sector's recent cooling down. All the problematic warning signs are visible through up surge of default loans in the real estate market mostly in U.S., however, since we live in a global economy, the effects of U.S. real estate slowing down has started affecting bank in UK. Read the following extract from The Guardian:

"To those queueing outside Northern Rock last week in the panic to remove their precious nest eggs, the models may as well have been written in Klingon for all the British public understands of how they worked or indeed why they have come to exert such a powerful influence over their lives.

But the rocket scientists' model was actually quite simple: the American underclass would be turned into an asset by offering them mortgages which they had traditionally been denied. Of course, they would have to pay more for their home loans than normal because they were such risky debtors. But the rocket scientists believed they had insured themselves against the risks by selling the loans on to other institutions in complex financial bundles of debt.

Unfortunately for the rocket scientists, their Ferrari dealers, their trophy spouses waiting for those post-Christmas bonuses to buy the chalet in Aspen, and pretty much the rest of the world, they were stunningly, catastrophically, outrageously wrong.

And the problem for the world now is no one - not Northern Rock customers, not the Bank of England, not Ben Bernanke, the chairman of the US Federal Reserve who on Tuesday will make a decision on interest rates that will have truly global implications - knows yet just how wrong the rocket scientists have called it."

Article Link:
Panic? Queue here

Here is a photo depicting long line of panicked folks in front of Northern Rock bank in UK.