What happened?

I began my last posting on 18th January, before my break to ski in the last remaining democratic air in mainland Western Europe, with the following question for my return: "What will I find then I wonder?" Those of you following events from day to day, particularly those mainly dependent on the tightly controlled UK mainstream media, may see the main problems as the bugging of expense addicted non-productive Members of the now almost completely doomed Westminster Parliament. The crisis I feared when I speculated on events before my departure yet remains to confront the public's consciousness, but it has indeed developed and grown. The crisis in France's second largest bank, Société Générale, (read the latest developments from the IHT linked here) and the resulting shock to the French, EU and world financial system should surely have alerted Britons to the real gravity of the Northern Rock situation where a comparatively minor bank has apparently lumbered taxpayers with a commitment now variously estimated as anywhere between 25 and 75 billion pounds not just the 7 billion Euros involved in France. The US Federal Reserve twice over eight days made large cuts in its interest rates. The UK Government denied Parliament any proper debate or amending ability on a Treaty that will condemn British Parliamentary democracy to the dustbin of history. Monday's Panorama programme this week demonstrating how UK house price data at the Land Registry has been ramped up by racketeers may explain part of the otherwise inexplicable ever growing liabilities of Northen Rock. It also worryingly indicates that other mortgage lenders must be in a similar situation with hugely artificial asset bases. A rough day seems ahead in Europe's markets today. The situation develops, I will now resume my regular observations on the critical areas as seen through these old eyes (typos likely to continue!).