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Britain is at "serious risk" of entering a decade-long recession similar to that experienced by Japan in the 1990s, the outgoing deputy governor of the Bank of England has warned.
Britain at risk of 10 year recession
The national debt is likely to be catapulted through the 2 trillion mark following the Treasury's decision to stand behind Britain's troubled banks' debts.
UK national debt set to surpass 2 trillion
US bank shares hit a near 17-year low on Thursday on fears the government will have to nationalise troubled institutions such as Citigroup and Bank of America.
US bank shares near 17-year lows
A leading US economist has called on the Federal Reserve to target an inflation rate of 5pc to 6pc over the next two years to erode the debt burden and slow the pace of job losses.
Ken Rogoff says Fed needs to set inflation target of 6pc to help ease crisis
The US authorities are facing tough questions over why they took so long to act against Allen Stanford's business empire amid accusations that a "massive fraud" at his Antigua-registered banking group dates back to the mid-1990s.
Alarm bells sounded over Allen Stanford in 1995, but no one listened