UK economy: What burst bubble looks like

What bubbled has burst. The UK economy contracted by 0.5% in the third quarter and has much further to fall. The pound, which has lost about a tenth of its value against the dollar in a week, is pointing the way. An economy built on foundations of financial froth is facing grim readjustment. Everything points to a distant recovery. The largest quarterly contraction in the UK since 1990 is just a beginning. Another big fall in manufacturing was accompanied by a 0.4% decline in the dominant servi...