Alan Budd: Pass. I really don’t know. The important question is whether a way can be found of preserving financial stability while discouraging foolish behaviour by lenders and borrowers(this must be one of the oldest questions in the world). Changed regulation is likely to be part of the answer but one hopes that it is only a small part.

Economists Survey

The results in full
Q1: What are the 3 main risks to economic stability in 2008?
Q2: How does the credit squeeze change the job of central banks?
Q3: How deep will the correction be in the housing market?
Q4: How far is it possible to ignore short-term inflationary pressures?
Q5: What needs to be done with the public finances?
Q6: Are emerging economies the next global bubble?
Q7: To what extent will the US election affect the world economy?
Q8: Where will Northern Rock be this time next year?
2007 survey

Ian Plenderleith: Anyone’s guess - a break-up looks most likely. But I don’t see it as a big thing: institutions fail from time to time and, provided depositors are protected, that’s the way it should be. The reverberations dissipate quite quickly.