The above statement by Pete is incorrect. We have a thriving sub prime mortgage market and many work off debt to income ratio as high as 50%. E.G. client earns £50k per year therefore maximum monthly mortgage payment can be 50000/12 * 50% = £2083. Think of the size of mortgage that would achieve. . . Slightly more than 3.75 x income! I think many of the lenders will end up getting their fingers burnt .

Scott, Mortgage Broker, Manchester, UK

This is a quick reality check for you Mr Balchin, are you actually living in Bristol or on Mars. No the Martian economy does not have Sub Prime mortgage industry, but being as I work for a Sub Prime broker here in Bournemouth (UK), and deal with the "financially naive and unsophisticated" (Not my words but the FSA's) on a daily basis I believe we have a booming sub prime economy. Lenders in this country are offering mortgages based on a debt to income calculation, which can quite easily give you a mortgage of nearly 7 times income and lending up to 100% of the property value, used mainly by the 1st time buyer to get on the 1st rung of the property ladder because property prices are so high (talk about stupidity). Now with interest rates on the rise here in the UK we are finding more and more people unable to pay for the mortgages they could afford only 12 months ago. Repossessions are on the rise, and before long we will be in the same situation as our brethren accross the pond.

Dave Rudd, Bournemouth, UK

Since GE is the parent company of CNBC( !! ) I'll be watching & listening to see how CNBC spins this anouncement! Will CNBC give GE the same air time with the same importance as the Wal-mart earnings report, also? LOL
At least GE is smart enough to bail before the derivatives dam totally collapses.
So far there have been about five / six companies that have folded and /or stopped clients withdrawals. Last week a large bank in Spain lost 400 Million in their real estate credit markets. Mmmmm Was that the sound of the Global credit collapse?!
Now maybe a good time to go to cash [ t-bills ] and wait out this financial storm. Have no fear, the stock markets will always be there waiting, to take your money. Have a nice day.

Henry Schweinbold, jacksonville, FL